Implementations of Monte Carlo simulations for asset allocation solutions and examinations. Specifically, includes the analysis of the significance of diversification in asset allocation and the construction of portfolios while exhibiting the utility of the technique for portfolio optimization.
- Usage of Monte Carlo simulations to examine the significance of diversification in investment portfolios. The outputs are the below graphs:
| Volatility Graph | Sharpe Ratio Graph |
|---|---|
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- Usage of Monte Carlo simulations to construct and optimize investment portfolios on minimum risk, maximum return, and maximum Sharpe ratio. The output is the following;
