Does the program use returns that are normally distributed, producing a symmetrical distribution; or does it instead assume that return relatives are lognormally distributed, producing a distribution that is skewed to the right?
Also, are withdrawals taken at the beginning of the year or at the end of the year?
Distribution of returns
Re: Distribution of returns
Hello,
Thanks for trying out the planner and for your questions. Please see answers below...
If you have other questions, be sure to post again...
Jim
Thanks for trying out the planner and for your questions. Please see answers below...
The simulation assumes returns are normally distributed and thus generated returns will be symmetrical around the average return.plb wrote:Does the program use returns that are normally distributed, producing a symmetrical distribution; or does it instead assume that return relatives are lognormally distributed, producing a distribution that is skewed to the right?
Withdrawals are taken at the beginning of the year and portfolio growth is computed at the end of the year.Also, are withdrawals taken at the beginning of the year or at the end of the year?
If you have other questions, be sure to post again...
Jim
Who is online
Users browsing this forum: No registered users and 32 guests