Personal Investments • Proper way to extract Monte Carlo parameters from historical data

Question: is generating nominal samples divided by random inflation, the same distribution as generating real samples from my real distribution table and using those without calculating an inflation factor? I think yes?

Pretty sure this is not the case, because historic inflation is probably correlated with historic returns. Try charting years with nominal return on x axis and inflation on the y and see if there’s a trend line or a big blob.

Statistics: Posted by Walkure — Thu Oct 30, 2025 9:53 pm — Replies 1 — Views 70

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