Explain number of dimensions in Monte Carlo method

Explain number of dimensions in Monte Carlo method.

E

Expert

Verified

Number of dimensions: For each random factor you will have to simulate a time series. It will obviously take longer to do this, but the time will only be proportional to number of factors, which isn’t so bad. It makes Monte Carlo methods perfect for higher dimensions when the finite-difference methods begin to crawl.

   Related Questions in Financial Management

©TutorsGlobe All rights reserved 2022-2023.