What does a Monte Carlo Simulation do in financial planning?

MARK ALL THAT APPLY

A. The simulation uses past performance of the market to predict how the market will do in the future to give an individual advice when to buy or sell stocks.

B. The simulation uses an average annual return calculation to select investments for an individual.

C. The simulation measures the beta of thousands of funds and then selects the ones with best risk-adjusted returns.

D. The simulation tests many possible outcomes of a given asset allocation and cash flow, and then it gives a probability of success.

E. The simulation allows investors to test online gambling services that simulate stock market returns.

F. The simulation gives a probability of when you will run out of money based on a given asset allocation.