Monte Carlo simulation assumes all assets earn:

Name: Monte Carlo simulation assumes all assets earn:
Brand: Quizplus
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Quizplus · Accepted Answer

Monte Carlo simulation does not assume that all assets earn a specific return such as the market index return, YTM on AAA bonds, or brokers call. Instead, it typically uses a risk-free rate as a baseline for simulations, incorporating randomness and variability in asset returns to model different scenarios.

Monte Carlo Simulation Assumes All Assets Earn