Using simulation has few drawbacks since individual cash flows generally are independent and positively correlated.

Name: Using simulation has few drawbacks since individual cash flows generally are independent and positively correlated.
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Question

Quizplus · Accepted Answer

Using simulation can have drawbacks such as overlooking interrelationships between cash flows, assuming perfect correlation, and the possibility of generating inaccurate results due to faulty assumptions or input data.

Using Simulation Has Few Drawbacks Since Individual Cash Flows Generally