Hello community,
I've implemented a Monte-Carlo Simulation in excel. My goal is to generate 250 daily returns of the German stock index DAX.
The parameters of this simulation are based on 6000 daily returns of this index, I downloaded from the internet.
The original data are left-skewed which is in line with the recent theory in finance. The returns generated by the simulation however are right-skewed
which is a big problem. The reason could be that, I use the normsinv function in excel which calculates the inverse of the Standard Normal Cumulative Distribution Function for a supplied probability value.
Have any of you an idea how I can model a left skewed return distribution in a simple way in excel?
Any advice is appreciated.
Thanks
alleco
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