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Monte Carlo Simulations for Stock prices

  • Plots Monte Carlo Simulations using Geometric Brownian Motion
  • Compares values predicted using the Monte Carlo Simulation with the actual stock prices
  • Jagged black line on Monte Carlo Simulation is actual stock price
  • Straight black line on Monte Carlo Simulation is the value predicted by the simulation
  • Uses different amounts of historical data in the equation to evaulate which amount of historical data used is most effective in predicting stock prices

View notebook in nbviewer

Sample graph:

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