Abraham, Jon P.
Posterro, Barry John
Economic volatility is unpredictable, but investors try their best to prepare for the worst possibilities. A simulation of this fluctuation may be captured using mathematical models. An Economic Scenario Generator (ESG) uses a mathematical procedure to simulate, not predict, the returns for assets. We built our own ESG, using Excel, that is designed to include unlikely economic catastrophes. Our ESG simulated the returns of 10 exchange traded funds (ETFs) based on the historical returns of these ETFs. The final simulated returns of our ESG provide scenarios that may help investors prepare for various economic conditions.
Worcester Polytechnic Institute
Major Qualifying Project
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