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A financial analyst is evaluating a complex investment model that includes multiple variables such as interest rates, market volatility, and economic growth. The analyst wants
A financial analyst is evaluating a complex investment model that includes multiple variables such as interest rates, market volatility, and economic growth. The analyst wants to understand how these factors interact and affect the model's output under various future economic conditions. Which combination of risk analysis techniques would be most appropriate and comprehensive for this task?
Select one:
a Multivariable sensitivity analysis and worstcase scenario analysis
b Onevariable sensitivity analysis followed by stress testing with extreme value tests
c Onevariable sensitivity analysis and bestcase scenario analysis
d Multivariable sensitivity analysis followed by scenario analysis encompassing bestcase, worstcase, and expected scenarios
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