On slide 35 you write that “Monte Carlo simulation can fill in the gap”, but how can we run a MC simulation without a model? That is the essence behind MC in my opinion.
Empirical loss distribution |
||||||||||||||
|
||||||||||||||
|
||||||||||||||
‹‹ LDA at work
VaR ››
Learn Finance with the pros. Better articles, resources and screencasts for easier learning.
Empirical loss distribution |
||||||||||||||
|
||||||||||||||
|
||||||||||||||