QPP does not simply do Monte Carlo on historical statistics. If it did, it would not be *forward looking*. The forward looking parameters use historical data but they are not simply a rehashing of historical data. You may find that the Ibbotson paper is helpful in understanding the theory behind this type of model--linked in my comments to Eric above.
Also, I do not understand the contradiction you mention...
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To Ganesh Kumar:
Mar 03 11:24 am
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All Comments by Geoff Considine »Portfolio Theory Vindicated [View article]
QPP does not simply do Monte Carlo on historical statistics. If it did, it would not be *forward looking*. The forward looking parameters use historical data but they are not simply a rehashing of historical data. You may find that the Ibbotson paper is helpful in understanding the theory behind this type of model--linked in my comments to Eric above.
Also, I do not understand the contradiction you mention...
Geoff