notices - See details
Notices
JV
Jason Voss, CFA (not verified)
4th June 2013 | 10:21am

Hi Carl,

Here is how the sausage was made:

First, both 'series' for the above post were created by choosing at random a beginning level of an invented 'stock market' and a random level for an invented '10 year Treasury.' In this case, for the invented stock market the 'seed' level was 1,378.55 and for the invented Treasury the level was 3.74%.

Second, using Excel's RANDBETWEEN function I calculated 59 percentage changes subsequent to the seed levels. For the invented stock market the range for RANDBETWEEN was between +11% and -17%, and for the invented Treasury the RANDBETWEEN was between +19% and -11%.

Does this help you to evaluate?

With smiles,

Jason