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Which of the following statements is CORRECT? a. One advantage of scenario analysis relative to sensitivity analysis is that it explicitly takes into account the

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Which of the following statements is CORRECT? a. One advantage of scenario analysis relative to sensitivity analysis is that it explicitly takes into account the probability of specific effects occurring, whereas sensitivity analysis doesn't account for probabilities. Market risk is important, but it does not have a direct effect on stock prices because it only affects beta. c. Sensitivity analysis is a good way to measure market risk because it explicitly takes into account diversification effects. d. Well-diversified stockholders do not need to consider market risk when determining required rates of return

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