AIM 10 Monte Carlo simulation

Monte Carlo simulation is single most powerful and versatile tool in financial decision-making. This section explains how to apply the Monte Carlo simulation technique and demonstrates it using three distinctly different finance-oriented problems. @Risk, the most popular Monte Carlo Excel add-in is used.

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• Installation instructions for @Risk

• Lecture notes

  • ​​​Slides

    • Support files: 

      • ​MC NPV.xlsx

      • MC Option valuation.xlsx

      • ​MC Expected management fees.xlsx