Home > Forum Home > Excel Portfolio Optimization Template > Probability of achieving target return > Probability under Monte Carlo simulation Share

Probability under Monte Carlo simulation

Excel Help for Probability Under Monte Carlo Simulation in Excel Portfolio Optimization Template


Forum TopicLogin

Probability Under Monte Carlo Simulation

Rate this:
(3/5 from 1 vote)
HappyThe target return is entered in the Input sheet and represents a target return corresponding to the periodicity of the data.  If data is monthly, then 0.1% represents 1.2% annual return for the portfolio.

Monte Carlo simulation is run to calculate the probability of achieving this return based on the normal distribution of portfolio returns given the mean and standard deviation (volatility).  More information on this can be found in the user guide.
 Excel Business Forums Administrator
 Posted by on
 
View Full Post

Excel templates and solutions matched for Probability under Monte Carlo simulation:

Solutions: Risk Simulation