Timeline for Variance of the future value of a cash flow

Current License: CC BY-SA 3.0

13 events

when toggle format	what		by	license	comment
Jun 9, 2015 at 3:19	history	edited	Zen	CC BY-SA 3.0	deleted 39 characters in body; edited title
Jun 8, 2015 at 21:45	answer	added	whuber♦		timeline score: 4
Jun 8, 2015 at 16:32	history	reopened	whuber♦
Jun 8, 2015 at 14:58	history	edited	Zen	CC BY-SA 3.0	added 20 characters in body
Jun 8, 2015 at 14:19	review	Reopen votes
Jun 8, 2015 at 16:32
Jun 8, 2015 at 13:59	history	edited	CCL	CC BY-SA 3.0	added 77 characters in body
Jun 8, 2015 at 13:52	comment	added	CCL		Way better !! Inputs : pension of € 3000/month during 240 months, starting at now+40 years Output (P(X<=x)=20%, P(X<=x)=50%, P(X>=x)=20%) : Formula : € 2,506,743.83 € 2,513,886.71 € 2,521,029.58 MonteCarlo : € 2,506,550.77 € 2,519,574.13 € 2,532,597.50 Thanks, I'm going to edit my answer with your formula
Jun 7, 2015 at 11:46	comment	added	CCL		Thank you @Zen for the formula. I compared the distribution with $$ Var(FV)≈\sigma^2×(g′(μ))2. $$ and with a monte carlo simulation. The spread is way smaller with the approximation, so I guess there's a tradeoff between accuracy and speed.
Jun 6, 2015 at 23:39	comment	added	Glen_b		Why is the (random) interest the same in every period? Do you really mean for the daily return - not it's distribution, but its actual realized value - to be exactly the same for day 1 and day 2 and day 3? If not, you need a different symbol for each day ($r_1,r_2,r_3,...$)
Jun 6, 2015 at 17:10	history	closed	Andy Stephan Kolassa Silverfish Nick Cox John		Not suitable for this site
Jun 6, 2015 at 13:25	review	Close votes
Jun 6, 2015 at 17:10
Jun 6, 2015 at 13:04	review	First posts
Jun 6, 2015 at 13:04
Jun 6, 2015 at 13:02	history	asked	CCL	CC BY-SA 3.0