Pls see the attached photo
Share
Please briefly explain why you feel this question should be reported.
Please briefly explain why you feel this answer should be reported.
Please briefly explain why you feel this user should be reported.
MCS doens’t assume ND. It can be modelled to fit ND.
See, parametric VAR mein generally we assume normal distribution (even though one can use distributions other than normal) that’s why the answer is A.
As far as monte carlo goes, requirement of mean and sd does not decide which method of computing VAR will be used. Monte Carlo simulation uses whatever distribution the model user chooses.