Bottom 10% value

[caymann]

How should i read the number for "bottom 10% value"

Is that a cumulative calculation?

Example: Let say, i define a custom return of 0% with a std dev of 10% for the first 10yrs of retirement.
I am trying to simulate a decade of sequence of returns risk.

After the simulation is done, i look at the "bottom 10% value"
I would like to know if this number was reached by constantly assuming a -5%-ish return, back to back, for 10years.
Or maybe it means something else?

thanks
jim

[jimr]

The top and bottom 10% portfolio values are determined in a manner similar to the median portfolio values.

When the simulation is run, the portfolio values for each year for each of the 10,000 simulation iterations are stored. Once the simulation run is completed, the 10,000 stored values for each year are sorted into ascending order.

The sorted stored value in slot 1,000 (out of 10,000) for a given year represents the bottom 10% value for that year. The value in slot 9,000 is reported for the top 10% value, and the value in slot 5,000 is reported as the median value.