Week 7 — Monte Carlo + simulation

Milestone

Build Monte Carlo and random-walk simulation tools.

Success criteria

Can generate 10k simulated price paths for SPY and compare the distribution against historical returns.

Deliverables

• [ ] Solve exercises on distributions and sampling.
• [ ] Implement Monte Carlo simulator.
• [ ] Implement geometric Brownian motion.
• [ ] Compare simulated vs historical returns.
• [ ] Write notes on limitations of assumptions.

Books

• Schaum's Outline of Probability and Statistics — Exercises for probability, statistics, distributions, covariance, regression.
• Schaum's Outline of Linear Algebra — Exercises for vectors, matrices, eigenvalues, least squares, PCA foundations.

Retrospective

Fill this in during the Sunday review.

What did I finish?

What is blocked?

What confused me?

Key takeaway this week: