I have a question around stock portfolio modeling specifically the development of the model. Is there “too much” simulating via Monte Carlo?
I’ve used Monte Carlo to simulate stock prices. I then used Monte Carlo to simulate returns based off of those stock price means and standard deviation.
Now I would like to simulate different dollar distributions to each of those stock tickers. I’m new to finance and I’m not sure if I may just be compounding errors up while I try to get to answer the question of how much money do I put into each stock identified.