On Wed, Feb 05, 2003 at 10:59:41PM -0600, Dan Minette wrote:

> If you want, John, I can do a Monte Carlo analysis on the probability
> that random variations could have caused the difference between the
> stock market performance under Republicans and Democrats.

I'm not John, but I would like to see those simulation results .

Again from Siegel, here are some parameters that may be useful for such
a simulation:

A = entire 1946-2001 period
B = entire 1926-2001 period
C = entire 1802-2001 period

  A     B     C
-----------------------------------------------------
 7.1%  6.9%  6.9%  compounded (annualized) real return
 8.6%  8.9%  8.4%  arithmetic average of annual real returns
17.4% 20.3% 18.1%  standard deviation of arithmetic returns

Annual returns probably follow a log-normal distribution (i.e., the log
of the returns is normally distributed)


-- 
"Erik Reuter" <[EMAIL PROTECTED]>       http://www.erikreuter.net/
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