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Which of the following statements about ...

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题目

Which of the following statements about simulation is invalid?

选项

A.The historical simulation approach is a nonparametric method that makes no specific assumption about the distribution of asset returns.

B.When simulating asset returns using Monte Carlo simulation, a sufficient number of trials must be used to ensure simulated returns are risk neutral.

C.Bootstrapping is an effective simulation approach that naturally incorporates correlations between asset returns and non-normality of asset returns, but does not generally capture autocorrelation of asset returns.

D.Monte Carlo simulation can be a valuable method for pricing derivatives and examining asset return scenarios.

答案

B

解析

Risk neutrality has nothing to do with sample size.风险中立性与样本量无关。