Question

In a two-scenario model of an emerging market, it is recommended that the analyst create a base-case set of forecasts and a set of forecasts associated with a period of economic distress. Which of the following best represents the range of probability weights to assign the economic distress scenario?

a) 5 to 10 percent.

b) 10 to 20 percent.

c) 20 to 30 percent.

d) 30 to 40 percent.

Answer

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