Assets = Asset A Asset B Fill in the data inside a red box

Mean Annual Returns 10.0% 6.0%

Standard Deviations 20.0% 8.0%
Allocation 60.0% 40.0%
Correlation 10.0%
Current Portfolio $100,000
Number of Months 40
Number of Monte Carlo iterations 5000 5000
Theoretical Values (assuming a Normal distribution) Monte Carlo Values (over 5000 iterations)
Mean Annual Return of Portfolio 8.4% Monthly 0.67% 27.0% 40 months MC Average Return 26.6%
Annual Standard Deviation of Portfolio 12.7% Monthly 3.67% 23.2% 40 months MC Average SD 22.5%

Probability that Theoretical Monte Carlo 100.0%Monte Carlo Probability

Portfolio changes 100.0% 90.0% that Portfolio is LESS
by LESS than R% 90.0% than $X in 40 months
in 40 months 80.0%
80.0%
70.0%
70.0%
60.0%
60.0%
50.0%
50.0%
40.0%
40.0%

30.0% 30.0%
20.0% 20.0%
10.0% 10.0%
$X
0.0% R% 0.0%

$118,000
$124,000
$130,000
$136,000
$142,000
$148,000
$154,000
$160,000
$166,000
$172,000
$178,000
$64,000
$70,000
$76,000
$82,000
$88,000
$94,000
$100,000
$106,000
$112,000
50.0%

75.0%

100.0%
-50.0%

-25.0%

0.0%

25.0%

Probability that Portfolio changes by LESS than R% in 40 months

Monte Carlo Probability that Portfolio is LESS than $X in 40 months
 Gains Pct Portfolio Table-Lookup Monte Carlo Theoretical
-36.0% 64.0% $64,000 0.0025 -2.807 0.1% 0.3%
-30.0% 70.0% $70,000 0.0050 -2.576 0.4% 0.7%
-24.0% 76.0% $76,000 0.0075 -2.432 1.0% 1.4%
-18.0% 82.0% $82,000 0.0100 -2.326 2.5% 2.6%
-12.0% 88.0% $88,000 0.0125 -2.241 5.0% 4.7%
-6.0% 94.0% $94,000 0.0150 -2.170 8.7% 7.8%
0.0% 100.0% $100,000 0.0175 -2.108 14.6% 12.3%
(over 5000 iterations) 6.0% 106.0% $106,000 0.0200 -2.054 21.8% 18.3%
40 months 12.0% 112.0% $112,000 0.0225 -2.005 29.9% 26.0%
40 months 18.0% 118.0% $118,000 0.0250 -1.960 37.8% 35.0%
24.0% 124.0% $124,000 0.0275 -1.919 45.4% 44.9%
30.0% 130.0% $130,000 0.0300 -1.881 53.6% 55.2%
36.0% 136.0% $136,000 0.0325 -1.845 61.5% 65.1%
42.0% 142.0% $142,000 0.0350 -1.812 68.9% 74.1%
48.0% 148.0% $148,000 0.0375 -1.780 74.8% 81.7%
54.0% 154.0% $154,000 0.0400 -1.751 79.9% 87.8%
60.0% 160.0% $160,000 0.0425 -1.722 84.6% 92.2%
66.0% 166.0% $166,000 0.0450 -1.695 88.0% 95.3%
72.0% 172.0% $172,000 0.0475 -1.670 90.6% 97.4%
78.0% 178.0% $178,000 0.0500 -1.645 93.2% 98.6%
0.0525 -1.621
Increment 0.06 0.0550 -1.598
$X 0.0575 -1.576
0.0600 -1.555
$118,000
$124,000
$130,000
$136,000
$142,000
$148,000
$154,000
$160,000
$166,000
$172,000
$178,000

0.0625 -1.534
0.0650 -1.514
0.0675 -1.495
0.0700 -1.476
0.0725 -1.457
0.0750 -1.440
0.0775 -1.422
0.0800 -1.405
0.0825 -1.388
0.0850 -1.372
0.0875 -1.356
0.0900 -1.341
0.0925 -1.326
0.0950 -1.311
0.0975 -1.296
0.1000 -1.282
0.1025 -1.267
0.1050 -1.254
0.1075 -1.240
0.1100 -1.227
0.1125 -1.213
0.1150 -1.200
0.1175 -1.188
0.1200 -1.175
0.1225 -1.163
0.1250 -1.150
0.1275 -1.138
0.1300 -1.126
0.1325 -1.115
0.1350 -1.103
0.1375 -1.092
0.1400 -1.080
0.1425 -1.069
0.1450 -1.058
0.1475 -1.047
0.1500 -1.036
0.1525 -1.026
0.1550 -1.015
0.1575 -1.005
0.1600 -0.994
0.1625 -0.984
0.1650 -0.974
0.1675 -0.964
0.1700 -0.954
0.1725 -0.944
0.1750 -0.935
0.1775 -0.925
0.1800 -0.915
0.1825 -0.906
0.1850 -0.896
0.1875 -0.887
0.1900 -0.878
0.1925 -0.869
0.1950 -0.860
0.1975 -0.851
0.2000 -0.842
0.2025 -0.833
0.2050 -0.824
0.2075 -0.815
0.2100 -0.806
0.2125 -0.798
0.2150 -0.789
0.2175 -0.781
0.2200 -0.772
0.2225 -0.764
0.2250 -0.755
0.2275 -0.747
0.2300 -0.739
0.2325 -0.731
0.2350 -0.722
0.2375 -0.714
0.2400 -0.706
0.2425 -0.698
0.2450 -0.690
0.2475 -0.682
0.2500 -0.674
0.2525 -0.667
0.2550 -0.659
0.2575 -0.651
0.2600 -0.643
0.2625 -0.636
0.2650 -0.628
0.2675 -0.620
0.2700 -0.613
0.2725 -0.605
0.2750 -0.598
0.2775 -0.590
0.2800 -0.583
0.2825 -0.575
0.2850 -0.568
0.2875 -0.561
0.2900 -0.553
0.2925 -0.546
0.2950 -0.539
0.2975 -0.532
0.3000 -0.524
0.3025 -0.517
0.3050 -0.510
0.3075 -0.503
0.3100 -0.496
0.3125 -0.489
0.3150 -0.482
0.3175 -0.475
0.3200 -0.468
0.3225 -0.461
0.3250 -0.454
0.3275 -0.447
0.3300 -0.440
0.3325 -0.433
0.3350 -0.426
0.3375 -0.419
0.3400 -0.412
0.3425 -0.406
0.3450 -0.399
0.3475 -0.392
0.3500 -0.385
0.3525 -0.379
0.3550 -0.372
0.3575 -0.365
0.3600 -0.358
0.3625 -0.352
0.3650 -0.345
0.3675 -0.338
0.3700 -0.332
0.3725 -0.325
0.3750 -0.319
0.3775 -0.312
0.3800 -0.305
0.3825 -0.299
0.3850 -0.292
0.3875 -0.286
0.3900 -0.279
0.3925 -0.273
0.3950 -0.266
0.3975 -0.260
0.4000 -0.253
0.4025 -0.247
0.4050 -0.240
0.4075 -0.234
0.4100 -0.228
0.4125 -0.221
0.4150 -0.215
0.4175 -0.208
0.4200 -0.202
0.4225 -0.196
0.4250 -0.189
0.4275 -0.183
0.4300 -0.176
0.4325 -0.170
0.4350 -0.164
0.4375 -0.157
0.4400 -0.151
0.4425 -0.145
0.4450 -0.138
0.4475 -0.132
0.4500 -0.126
0.4525 -0.119
0.4550 -0.113
0.4575 -0.107
0.4600 -0.100
0.4625 -0.094
0.4650 -0.088
0.4675 -0.082
0.4700 -0.075
0.4725 -0.069
0.4750 -0.063
0.4775 -0.056
0.4800 -0.050
0.4825 -0.044
0.4850 -0.038
0.4875 -0.031
0.4900 -0.025
0.4925 -0.019
0.4950 -0.013
0.4975 -0.006
0.5000 0.000
0.5025 0.006
0.5050 0.013
0.5075 0.019
0.5100 0.025
0.5125 0.031
0.5150 0.038
0.5175 0.044
0.5200 0.050
0.5225 0.056
0.5250 0.063
0.5275 0.069
0.5300 0.075
0.5325 0.082
0.5350 0.088
0.5375 0.094
0.5400 0.100
0.5425 0.107
0.5450 0.113
0.5475 0.119
0.5500 0.126
0.5525 0.132
0.5550 0.138
0.5575 0.145
0.5600 0.151
0.5625 0.157
0.5650 0.164
0.5675 0.170
0.5700 0.176
0.5725 0.183
0.5750 0.189
0.5775 0.196
0.5800 0.202
0.5825 0.208
0.5850 0.215
0.5875 0.221
0.5900 0.228
0.5925 0.234
0.5950 0.240
0.5975 0.247
0.6000 0.253
0.6025 0.260
0.6050 0.266
0.6075 0.273
0.6100 0.279
0.6125 0.286
0.6150 0.292
0.6175 0.299
0.6200 0.305
0.6225 0.312
0.6250 0.319
0.6275 0.325
0.6300 0.332
0.6325 0.338
0.6350 0.345
0.6375 0.352
0.6400 0.358
0.6425 0.365
0.6450 0.372
0.6475 0.379
0.6500 0.385
0.6525 0.392
0.6550 0.399
0.6575 0.406
0.6600 0.412
0.6625 0.419
0.6650 0.426
0.6675 0.433
0.6700 0.440
0.6725 0.447
0.6750 0.454
0.6775 0.461
0.6800 0.468
0.6825 0.475
0.6850 0.482
0.6875 0.489
0.6900 0.496
0.6925 0.503
0.6950 0.510
0.6975 0.517
0.7000 0.524
0.7025 0.532
0.7050 0.539
0.7075 0.546
0.7100 0.553
0.7125 0.561
0.7150 0.568
0.7175 0.575
0.7200 0.583
0.7225 0.590
0.7250 0.598
0.7275 0.605
0.7300 0.613
0.7325 0.620
0.7350 0.628
0.7375 0.636
0.7400 0.643
0.7425 0.651
0.7450 0.659
0.7475 0.667
0.7500 0.674
0.7525 0.682
0.7550 0.690
0.7575 0.698
0.7600 0.706
0.7625 0.714
0.7650 0.722
0.7675 0.731
0.7700 0.739
0.7725 0.747
0.7750 0.755
0.7775 0.764
0.7800 0.772
0.7825 0.781
0.7850 0.789
0.7875 0.798
0.7900 0.806
0.7925 0.815
0.7950 0.824
0.7975 0.833
0.8000 0.842
0.8025 0.851
0.8050 0.860
0.8075 0.869
0.8100 0.878
0.8125 0.887
0.8150 0.896
0.8175 0.906
0.8200 0.915
0.8225 0.925
0.8250 0.935
0.8275 0.944
0.8300 0.954
0.8325 0.964
0.8350 0.974
0.8375 0.984
0.8400 0.994
0.8425 1.005
0.8450 1.015
0.8475 1.026
0.8500 1.036
0.8525 1.047
0.8550 1.058
0.8575 1.069
0.8600 1.080
0.8625 1.092
0.8650 1.103
0.8675 1.115
0.8700 1.126
0.8725 1.138
0.8750 1.150
0.8775 1.163
0.8800 1.175
0.8825 1.188
0.8850 1.200
0.8875 1.213
0.8900 1.227
0.8925 1.240
0.8950 1.254
0.8975 1.267
0.9000 1.282
0.9025 1.296
0.9050 1.311
0.9075 1.326
0.9100 1.341
0.9125 1.356
0.9150 1.372
0.9175 1.388
0.9200 1.405
0.9225 1.422
0.9250 1.440
0.9275 1.457
0.9300 1.476
0.9325 1.495
0.9350 1.514
0.9375 1.534
0.9400 1.555
0.9425 1.576
0.9450 1.598
0.9475 1.621
0.9500 1.645
0.9525 1.670
0.9550 1.695
0.9575 1.722
0.9600 1.751
0.9625 1.780
0.9650 1.812
0.9675 1.845
0.9700 1.881
0.9725 1.919
0.9750 1.960
0.9775 2.005
0.9800 2.054
0.9825 2.108
0.9850 2.170
0.9875 2.241
0.9900 2.326
0.9925 2.432
0.9950 2.576
0.9975 2.807