This paper verifies the replication efficiency of the ETF (Exchange - Traded Fund), which should replicate the index of twenty largest companies listed on the Warsaw Stock Exchange (WIG20). It also tries to explain the source of occurring variations.
This paper verifies the difference between the ETF (Exchange-Traded Fund) market price and the value of its assets per share class. It also examines the duration of this differences and the way, in which they are corrected.
The aim of these paper is to present the genesis and methodical basis of the Monte Carlo simulation, which allows to incorporate in studies the stochastic nature of economic variables. Additionally this article considers the connection between the mentioned method and the concepts of determinism and indeterminism.
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