Comments on: Monte Carlo Simulations: An Overview http://www.financialfruition.com/monte-carlo-simulations-an-overview/50 a personal finance experience Wed, 18 Aug 2010 09:22:19 +0000 http://wordpress.org/?v=2.9.1 hourly 1 By: Quantext http://www.financialfruition.com/monte-carlo-simulations-an-overview/50/comment-page-1#comment-74 Quantext Tue, 13 Dec 2005 01:30:00 +0000 http://www.financialfruition.com/?p=50#comment-74 I ran across this discussion. My firm provides a Monte Carlo tool for personal portfolio management that is based in EXCEL. We have a bunch of papers on this topic at www.quantext.com. Financial Engines.com is a Monte Carlo tool online but it is not a full Monte Carlo--it assigns funds to specific asset classes and just simulates a few classes. I ran across this discussion. My firm provides a Monte Carlo tool for personal portfolio management that is based in EXCEL. We have a bunch of papers on this topic at http://www.quantext.com. Financial Engines.com is a Monte Carlo tool online but it is not a full Monte Carlo–it assigns funds to specific asset classes and just simulates a few classes.

]]> By: Anonymous http://www.financialfruition.com/monte-carlo-simulations-an-overview/50/comment-page-1#comment-73 Anonymous Wed, 09 Nov 2005 23:44:00 +0000 http://www.financialfruition.com/?p=50#comment-73 Typically monte carlo simulations use a random process to select data from a probability distribution (for example portfolio returns) to build a series of probabilistic outcomes. Lots of assumptions are involved (for instance the assumption that stock returns have normal distributions). Still useful in financial planning if you understand the limitations, but typically NOT based on actual historical return patterns (for example in a recession, or in an economic expansion). Typically monte carlo simulations use a random process to select data from a probability distribution (for example portfolio returns) to build a series of probabilistic outcomes. Lots of assumptions are involved (for instance the assumption that stock returns have normal distributions). Still useful in financial planning if you understand the limitations, but typically NOT based on actual historical return patterns (for example in a recession, or in an economic expansion).

]]> By: Financial Fruition http://www.financialfruition.com/monte-carlo-simulations-an-overview/50/comment-page-1#comment-72 Financial Fruition Tue, 25 Oct 2005 03:50:00 +0000 http://www.financialfruition.com/?p=50#comment-72 banking guy and anon 2, I will get back to you on that. When I was originally writing this post, I did not find anything, but will do some more digging. I know there is a way to build this into an excel sheet and will definitely be exploring this option more in depth. On another note, a lot of investment firms are providing this for free (trying to generate accounts by offering this service). banking guy and anon 2, I will get back to you on that. When I was originally writing this post, I did not find anything, but will do some more digging. I know there is a way to build this into an excel sheet and will definitely be exploring this option more in depth. On another note, a lot of investment firms are providing this for free (trying to generate accounts by offering this service).

]]> By: Anonymous http://www.financialfruition.com/monte-carlo-simulations-an-overview/50/comment-page-1#comment-71 Anonymous Fri, 21 Oct 2005 16:03:00 +0000 http://www.financialfruition.com/?p=50#comment-71 So the next question is, how do we perform Monte Carlo simulations on our own porfolios? So the next question is, how do we perform Monte Carlo simulations on our own porfolios?

]]> By: Banking Guy http://www.financialfruition.com/monte-carlo-simulations-an-overview/50/comment-page-1#comment-70 Banking Guy Wed, 12 Oct 2005 14:30:00 +0000 http://www.financialfruition.com/?p=50#comment-70 So it seems Monte Carlo simulations apply statistics to an excel-based portfolio estimation? Any good sites that offer online Monte Carlo portfolio analysis? -Ken So it seems Monte Carlo simulations apply statistics to an excel-based portfolio estimation?

Any good sites that offer online Monte Carlo portfolio analysis?

-Ken

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