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Article: Monte Carlo wins the bets: does Monte Carlo technology offer more than pretty pictures? (Tax and Financial Planning).
- Article from:
- Accounting Technology
- Article date:
- June 1, 2002
- Author:
CopyrightCOPYRIGHT 2002 SourceMedia, Inc. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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My Monte Carlo simulation can beat up your Monte Carlo simulation." That is not a statement that would appear on a financial planning software package or on a financial planning Web Site.
But in the world of risk assessment tools, it sometimes seems that the state of the art is devoted to bragging rights about who has the best implementation of Monte Carlo. Because almost any vendor who is serious about selling financial planning tools is using Monte Carlo tools to assess the probability of clients reaching their investment goals.
"One of the large competitors has a simulation that allows you to chose the number of simulations," says John Kollear, ...