Which of the following statement about simulation is invalid? a. The histori

Which of the following statement about simulation is invalid?

a. The historical simulation approach is a nonparametic method that makes no specific assumption about the distribution of asset returns.

b. When simulating asset returns using Monto Carlo simulation a sufficient number of trails must be used to ensure simulated returns are risk neutral.

c. Bootstrapping is an effective simulation approach that naturally incorporates correlations between asset returns and non-normality of asset returns but
does not generally capture autocorrelation of asset returns.

d. Monte Carlo simulation can be a valuable method for pricing derivatives and examining asset return scenarios.