Monte Carlo Simulation: Diversification under Opacity

Growth Rate g_I

Decay Rate g_0

Volatility σ_D

Opacity Cost λ₁

Belief Cost λ₂

Crisis Cost λ₃

Initial D₀

Target Threshold

Time Horizon

Monte Carlo Paths

Running Monte Carlo simulation...

Expected Diversification Index E[Dₜ] (with 10–90% bands)

Probability of Reaching Threshold Pr(Dₜ ≥ D̄)

Diversification Gap Over Time (Low − High)

🎲 Monte Carlo Simulation: Diversification under Opacity