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Monte Carlo
Glossary · Portfolio Construction
Definition
Randomized market paths used to estimate how a plan might behave under different return sequences. The output is a distribution, not a forecast.
Running 10,000 simulations shows the 10th-percentile outcome alongside the median, giving a sense of downside risk.
Terms are defined in the context of how ArthaPilot uses them. For authoritative definitions, consult the SEC, IRS, or a qualified financial advisor.