“The company’s officers and board of directors, including Chairman Kenneth Lay, CEO Jeffrey…

“The company’s officers and board of directors, including Chairman Kenneth Lay, CEO Jeffrey Skilling and CFO Andy Fastow, were selling their Enron stock at higher prices due to false accounting reports that made the stock seem more valuable than it truly was. After the scandal was uncovered, thousands of stockholders lost millions of dollars as Enron share values plummeted.”

Discus what you perceive from this scenario also explain the pros and corns of it in detail. (6)
QUESTION NO.2
Discuss the sensitivity analysis in detail. (4)