The GoldSim Financial Module is a program extension to GoldSim that allows you to probabilistically simulate financial systems that include components such as accounts and funds, investments, options, projects or undertakings with specified cash flows, and insurance policies. By combining the specialized financial elements in the Financial Module with GoldSim's underlying probabilistic, dynamic simulation framework, you can quickly simulate and analyze complex financial systems, as well as complex engineering and business systems that have a financial component.
Although the elements provided by the basic GoldSim framework can be (and have been) used to build complex financial models, a number of financial calculations are relatively complex, and building them using the standard GoldSim elements can be difficult, and in some cases, require development of custom programming (e.g., in a linked spreadsheet). For example,
•Computing the internal rate of return (IRR) of a series of cash flows requires an iterative calculation.
•Compounding interest in a fund (e.g., a bank account) can be relatively complex since the compounding can be based on different measures (e.g., minimum or average balance), and different compounding periods.
•When simulating investments (e.g., a portfolio of stocks), it is typically necessary to treat these as correlated "random walks" with specified drifts (trends) and volatility.
The Financial Module provides a number of specialized elements that allow these (and many other) kinds of calculations to be carried out in a straightforward and easy manner.
Learn more:
Introduction to the Financial Module
Getting Started with the Financial Module
Details of the Financial Module Elements