The Monte Carlo Returns Graph shows a histogram of the distribution and cumulative distribution for the returns expressed as CAGR%.

In the above example, the 90% confidence level corresponds to about 22% CAGR, meaning that 85% of the simulated equity curves showed a return of 22% or better. The distribution is centered around 35% but shows some simulated curves with a CAGR% as low as -25% and as high as 125%.

Edit Time: 10/1/2017 9:34:38 PM |
Topic ID#: 174 |