Answered

Get detailed and accurate responses to your questions with IDNLearn.com. Our experts provide accurate and detailed responses to help you navigate any topic or issue with confidence.

humberto is fairly cautious when analyzing a new project and thus he projects the most optimistic, the most realistic, and the most pessimistic outcome that can reasonably be expected. which type of analysis is he using?

Sagot :

Humberto is using Scenario Analysis.

Scenario analysis is the process of calculating the expected value of a portfolio after a specified amount of time, on the assumption that certain changes in the values of the portfolio's securities or significant circumstances, like an interest rate shift, would occur.

Scenario analysis is frequently used to calculate changes in a portfolio's value as a result of a negative event and can be used to look at a worst-case scenario.  

The accuracy of a scenario analysis depends on the analyst's inputs and presumptions.

To know more about scenario analysis click here-

https://brainly.com/question/28791623

#SPJ4

Thank you for being part of this discussion. Keep exploring, asking questions, and sharing your insights with the community. Together, we can find the best solutions. Thank you for choosing IDNLearn.com. We’re committed to providing accurate answers, so visit us again soon.