Assets = Asset A Asset B Fill in the data inside a red box Gains Pct

Mean Annual Returns 10.0% 6.0% -36.0% 64.0%

Standard Deviations 20.0% 8.0% -30.0% 70.0%
Allocation 60.0% 40.0% -24.0% 76.0%
Correlation 10.0% -18.0% 82.0%
Current Portfolio $100,000 -12.0% 88.0%
Number of Months 40 -6.0% 94.0%
Number of Monte Carlo iterations 5000 5000 0.0% 100.0%
Theoretical Values (assuming a Normal distribution) Monte Carlo Values (over 5000 iterations) 6.0% 106.0%
Mean Annual Return of Portfolio 8.4% Monthly 0.67% 27.0% 40 months MC Average Return 26.3% 40 months 12.0% 112.0%
Annual Standard Deviation of Portfolio 12.7% Monthly 3.67% 23.2% 40 months MC Average SD 22.6% 40 months 18.0% 118.0%
24.0% 124.0%
Theoretical Monte Carlo 100% 30.0% 130.0%
Probability that Monte Carlo Probability
Portfolio changes
100% 90% 36.0% 136.0%
that Portfolio is LESS
by LESS than R% 90% 80% than $X in 40 months 42.0% 142.0%
in 40 months 80% 70% 48.0% 148.0%
70% 60% 54.0% 154.0%
60% 50% 60.0% 160.0%
50%
66.0% 166.0%
40%
72.0% 172.0%
40% 30% 78.0% 178.0%
30% 20%
20% 10% Increment = 0.06
10% 0% $X
R%

$100,000
$106,000
$112,000
$118,000
$124,000
$130,000
$136,000
$142,000
$148,000
$154,000
$160,000
$166,000
$172,000
$178,000
$64,000
$70,000
$76,000
$82,000
$88,000
$94,000
0%
0%

100%
25%

50%

75%
-50%

-25%

Probability that Portfolio changes by LESS than R% in 40 months

Monte Carlo Probability that Portfolio is LESS than $X in 40 months
Portfolio Table-Lookup Monte Carlo Theoretical
$64,000 0.0025 -2.807 0.1% 0.3%
$70,000 0.0050 -2.576 0.5% 0.7%
$76,000 0.0075 -2.432 1.3% 1.4%
$82,000 0.0100 -2.326 2.8% 2.6%
$88,000 0.0125 -2.241 5.6% 4.7%
$94,000 0.0150 -2.170 9.3% 7.8%
$100,000 0.0175 -2.108 14.7% 12.3%
$106,000 0.0200 -2.054 21.9% 18.3%
$112,000 0.0225 -2.005 29.3% 26.0%
$118,000 0.0250 -1.960 37.5% 35.0%
$124,000 0.0275 -1.919 46.1% 44.9%
$130,000 0.0300 -1.881 54.3% 55.2%
$136,000 0.0325 -1.845 62.0% 65.1%
$142,000 0.0350 -1.812 69.0% 74.1%
$148,000 0.0375 -1.780 75.4% 81.7%
$154,000 0.0400 -1.751 80.5% 87.8%
$160,000 0.0425 -1.722 85.0% 92.2%
$166,000 0.0450 -1.695 88.4% 95.3%
$172,000 0.0475 -1.670 91.2% 97.4%
$178,000 0.0500 -1.645 93.7% 98.6%
0.0525 -1.621
0.0550 -1.598
0.0575 -1.576
0.0600 -1.555
0.0625 -1.534
0.0650 -1.514
0.0675 -1.495
0.0700 -1.476
0.0725 -1.457
0.0750 -1.440