Which of the following statements is correct? well-diversified stockholders do not need to consider market risk when determining required rates of return. one advantage of sensitivity analysis relative to scenario analysis is that it explicitly takes into account the probability of specific effects occurring, whereas scenario analysis cannot account for probabilities. sensitivity analysis is a good way to measure market risk because it explicity takes into account diversification effects. simulation analysis is a computerized version of scenario analysis where input variables are selected randomly on the basis of their probability distributions.