All of the following are correct about stress testing except: a. It is done under normal going concern environment. b. It is done to determine if the financial institution is able to survive a liquidity crisis under extreme stress conditions. c. It is done when needed such as in a company specific crisis. d. In volatile conditions, stress testing using at least one scenario is required.

All of the following are correct about stress testing except: a. It is done under normal going concern environment. b. It is done to determine if the financial institution is able to survive a liquidity crisis under extreme stress conditions. c. It is done when needed such as in a company specific crisis. d. In volatile conditions, stress testing using at least one scenario is required.

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter9: Decision Making Under Uncertainty

Section: Chapter Questions

Problem 37P

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