Which of the following statements is most correct? * [ Sensitivity analysis is a good way to measure market risk because it explicity takes into account diversification effects. O One advantage of...

Which of the following statements is most correct? * [ Sensitivity analysis is a good way to measure market risk because it explicity takes into account diversification effects. O One advantage of sensitivity analysis relative to scenario analysis is that it explicitly takes into account the probability of certain effects occurring, whereas scenario analysis does not consider probabilities. O Simulation analysis is a computerized version of scenario analysis that uses continuous probability distributions of the input variables. All of the statements are correct.