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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generate an example of a practical application of the monte carlo method.
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monte carlo methods can be used to estimate values in engineering and finance. for example, they can be used to simulate the performance of a financial security over time or to evaluate the risk associated with a particular portfolio of investments.
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