Question
Hi! pls help me not from books or any plagiarism etc. minimum 300 words.thank you! You plan to simulate a portfolio of investments over a
Hi! pls help me not from books or any plagiarism etc. minimum 300 words.thank you!
You plan to simulate a portfolio of investments over a multiyear period, so for each investment (which could be a particular stock or bond, for example), you need to simulate the change in its value for each of the years.
1)How would you simulate these changes in a realistic way?
2)Would you base it on historical data?
3)What about correlations?
4)Do you think the changes for different investments in a particular year would be correlated?
5)Do you think changes for a particular investment in different years would be correlated?
6)Do you think correlations would play a significant role in your simulation in terms of realism?
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