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"High Risk Investment = High Return Investment", "Low Risk Investment = Low Return Investment"

This is an example of:
a. Efficient Market Theory
b. Correlation
c. Duration
d. Monte Carlo Simulation

User Arek S
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1 Answer

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Answer:

Monte Carlo Simulation

Step-by-step explanation:

Monte Carlo simulation refers to a methodology used in monetary, program management, expense, and other prediction frameworks to know the impact of financial risks. A Monte Carlo model allows one to see all or most of the possible results in order to get a better understanding of the probability of a judgment.

In other words, Monte Carlo approaches can also be used in theory to address any issue with a deterministic explanation. By using the law of large numbers, by getting the empirical average of individual variable tests, integrals represented by expected value of a certain independent variables can be estimated.

User Conectionist
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