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Empirical loss distribution

Ened

New Member
Thread starter #1
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.
 

David Harper CFA FRM

David Harper CFA FRM
Staff member
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#2
Ened,

It's merely a summary extract from Linda Allen 5.2.2.1; i.e., Monte Carlo simulation can "fill in the gaps" where empirical distributions are not useful due to lack of data.

David
 
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