Monte-Carlo simulation is a process of creating asset returns based on actual trading days so that the probabilities of occurrence are consistent with recent historical experience.

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Monte-Carlo simulation is a method of generating various possible outcomes by randomly selecting inputs according to their probability distributions. In finance, it is often used to project future asset prices and estimate the probability of different investment outcomes. The inputs used in Monte-Carlo simulations are typically derived from historical data, so the probabilities of occurrence are based on observed patterns and trends.

Monte-Carlo Simulation Is a Process of Creating Asset Returns Based