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#!/usr/bin/python | |
# | |
# Monte Carlo simulation of the payoffs to angel investing. | |
# | |
# Assume a pool of N different investors, each investing in D deals, | |
# with a fixed distribution of payoffs per deal. Randomly simulate | |
# each investor's combined payoff, then compute the mean and std dev | |
# of all payoffs in the overall pool. | |
# | |
# This gives an individual angel an idea of what kind of payoff & |
This file contains bidirectional Unicode text that may be interpreted or compiled differently than what appears below. To review, open the file in an editor that reveals hidden Unicode characters.
Learn more about bidirectional Unicode characters
#!/usr/bin/python | |
# | |
# Monte Carlo simulation of the payoffs to angel investing. | |
# | |
# Assume a pool of N different investors, each investing in D deals, | |
# with a fixed time horizon and a fixed distribution of payoffs. | |
# Randomly simulate each investor's total payoff, then compute the | |
# mean and std dev of all IRRs in the overall pool. | |
# | |
# This gives an individual angel an idea of what kind of payoff & |