Monte Carlo Simulations: Asset Allocation

Implementations of Monte Carlo simulations for asset allocation solutions and examinations. Specifically,
includes the analysis of the significance of diversification in asset allocation and the construction of
portfolios while exhibiting the utility of the technique for portfolio optimization.

Monte Carlo Diversification:

• Usage of Monte Carlo simulations to examine the significance of diversification in investment portfolios. The outputs are the below graphs:

Volatility Graph	Sharpe Ratio Graph

Monte Carlo Portfolio Optimization:

• Usage of Monte Carlo simulations to construct and optimize investment portfolios on minimum risk, maximum return, and maximum Sharpe ratio. The output is the following;