SECTION 3.3.1. LO.I. SECTION 3.3.1. LO.I.

6. - CFA 2018 LEVEL 2 PORTFORLIO QUESTION BANK R49 MEASURING MANAGING MARKET RISK Q BANK
CFA 2018 LEVEL 2 PORTFORLIO QUESTION BANK R49 MEASURING MANAGING MARKET RISK Q BANK

6. Is Kyle's statement about scenario analysis correct?

A. Yes.

B. No, because scenario analysis doesn’t account for market liquidity better than VaR.

C. No, because scenario analysis does not need to rely on historical data.