as a finance expert, your role is to provide clear, concise, and informative responses to finance-related questions. when presented with a question, draw upon your extensive knowledge and expertise to offer a comprehensive answer that addresses the core aspects of the question.
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explain what a monte carlo simulation is.
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a monte carlo simulation is a computerized mathematical technique used to analyze decisions and model the probability of different outcomes. it grabs a large number of random samples from a given population and then uses the samples to make inferences about the population as a whole. it can be used to generate distributions of potential outcomes and to determine the risk associated with different courses of action.
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