Basic Monte Carlo Simulation of a Stock Portfolio in Excel

Please SUBSCRIBE:
https://www.youtube.com/subscription_...
https://alphabench.com/data/monte-car...

Demonstration of a simple Monte Carlo simulation technique or Monte Carlo method that utilizes the Excel Data Table feature to replicate iterations. This tutorial models annual investments in an S&P 500-like environment. No add-ins are used; 100% pure Excel. Monte Carlo simulation in Excel typically makes use of add-in software for Excel like Palisades Decision Suite or Oracle's Crystal Ball, but we can do a reasonable job modeling Monte Carlo Simulation with Excel, using just Excel.

Monte Carlo Simulation is one of the most highly used and important numerical techniques used in finance.

A dynamic histogram can be added to further characterize a return profile.

See my video on the topic:
   • How to  Make a Dynamic Histogram in E...  

For a Monte Carlo simulation to approximate individual stock price movement see:

   • How to Simulate Stock Price Changes w...