Which of the following statements is correct regarding Sensitivity Analysis?

Sensitivity analysis is a valuable tool in financial modeling and real estate analysis, focusing on the impact of varying inputs on outputs. The correct statement is that it allows simultaneous edits to multiple properties. This capability is crucial because analysts often need to assess how changes in assumptions—such as rental rates, operating expenses, or capitalization rates—affect a portfolio's overall performance or value.

By applying sensitivity analysis across multiple properties, users can better understand the interdependencies and collective effects of those changes rather than limiting the analysis to singular properties or portfolios. This holistic view enables more informed decision-making and risk assessment.

The other options misunderstand the scope and utility of sensitivity analysis. For instance, analyzing only complete portfolios neglects the value of looking at individual properties, while the need for external software integration is not a requirement of sensitivity analysis itself. Moreover, limiting the analysis to only individual properties disregards the advantage of evaluating multiple elements in a cohesive manner.