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The Monte Carlo Technique Selects Numbers Randomly from a Probability

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The Monte Carlo technique selects numbers randomly from a probability distribution for use in a quantitative model.


Definitions:

Return On Assets

A performance metric that measures the efficiency of a company in generating profit from its assets.

Return On Equity

Return on equity (ROE) measures a corporation's profitability by revealing how much profit a company generates with the money shareholders have invested.

Net Income

The company's net profit, calculated by subtracting all costs and taxes from its total income.

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