Excel Can Be Used to Perform

question 4

Multiple Choice

Excel can be used to perform

• A) discrete, next-event simulation.
• B) continuous simulation.
• C) analog simulation.
• D) Monte Carlo simulation.

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Definitions:

Optimal Weights

The proportion of each asset in a portfolio that maximizes its expected return for a given level of risk.

Expected Rate

Typically refers to the rate of return anticipated on an investment or project, based on projections or historical data.

Nominal Sharpe Ratio

A measure of risk-adjusted performance that indicates the average return minus the risk-free return divided by the standard deviation of return on an investment.

Nominal Return

The amount of profit or loss on an investment before adjusting for inflation.