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Monte Carlo bands disappear when ROR is terrible

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(@wmchbaker)
Active Member Customer
Joined: 2 years ago
Posts: 6
Topic starter  

Working in PRC2024, I took the starting spreadsheet and put in ROR of -20% for stocks and bonds for all 3 periods. The Monte Carlo results don't show bands, just a red line.



   
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(@smatthews51)
Member Admin
Joined: 5 years ago
Posts: 1116
 

@wmchbaker If you use PRC's default method of specifying standard deviation, using a ROR of -20% will result in a negative standard deviation, which is illegal. Consequently, PRC does not allow it to go below .01% and this means that there is virtually no variation in the returns from year to year during a Monte Carlo analysis and, hence, no blue bands.



   
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(@wmchbaker)
Active Member Customer
Joined: 2 years ago
Posts: 6
Topic starter  

OK, thanks for the info.



   
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