Guide To Excel For Finance: Monte Carlo Simulation

Monte Carlo SimulationIn its most basic form, the Monte Carlo simulation seeks to simulate real-world outcomes by showing a range of outcomes for a given variable set. For example, in the casino game roulette, Monte Carlo could simulate where the roulette ball lands for 10 consecutive rounds.Excel’s “RAND” function can generate random numbers in a given sample set.

Source: Guide To Excel For Finance: Advanced Calculations

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