Difference between revisions of "Monte Carlo simulation analysis"
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:[[Monte Carlo simulation analysis]]. A risk analysis technique in which a computer is used to simulate probable future events and thus to estimate the likely profitability and risk of a project. | :[[Monte Carlo simulation analysis]]. A risk analysis technique in which a computer is used to simulate probable future events and thus to estimate the likely profitability and risk of a project. | ||
According to [[Fundamentals of Financial Management by Eugene F. Brigham and Joel F. Houston (15th edition)]], | According to [[Fundamentals of Financial Management by Eugene F. Brigham and Joel F. Houston (15th edition)]], | ||
| − | :[[Monte Carlo Simulation]]. A risk analysis technique in which probable future events are simulated on a computer, generating estimated rates of return and risk indexes. | + | :'''[[Monte Carlo Simulation]]'''. A risk analysis technique in which probable future events are simulated on a computer, generating estimated rates of return and risk indexes. |
==Related concepts== | ==Related concepts== | ||
Latest revision as of 04:22, 2 November 2019
Monte Carlo simulation analysis is a risk analysis technique in which a computer is used to simulate probable future events and thus to estimate the likely profitability and risk of a project.
Definitions
According to Financial Management Theory and Practice by Eugene F. Brigham and Michael C. Ehrhardt (13th edition),
- Monte Carlo simulation analysis. A risk analysis technique in which a computer is used to simulate probable future events and thus to estimate the likely profitability and risk of a project.
According to Fundamentals of Financial Management by Eugene F. Brigham and Joel F. Houston (15th edition),
- Monte Carlo Simulation. A risk analysis technique in which probable future events are simulated on a computer, generating estimated rates of return and risk indexes.
Related concepts
- Financial management. A combination of enterprise efforts undertaken in order to procure and utilize monetary resources of the enterprise.
