A simple Monte Carlo Simulation (implemented in Go langauge) that projects the final investment amount of a Stock Portfolio. In this model, an investor starts with an initial investment amount, and invests annually a fixed amount of money.
By default, the simulation runs a million times. Within each simulation, the returns (in percent) generated for a stock portfolio follows a normal distribution with the mean and standard deviation specified by the variables portfolio_returns and portfolio_sd in the montecarlo.go file.
The final projected amount is the average of the final investment amount returned from the simulations.
Set the following variables to that you wish to simulate:
# Initial amount the investment starts with
begin_amt = 200000
# Amount of money that is invested at the end of each year
annual_inv = 50000
# Number of years to invest
years = 10
# Average return for a stock portfolio, in percentage
portfolio_returns = 0.12
# Standard deviation of the average return for a stock portfolio
portfolio_sd = 0.25In the terminal, execute:
$ go run montecarlo.go