Editing Simulation (section)

===Finance===
{{main|Monte Carlo methods in finance|Mathematical finance}}
In finance, computer simulations are often used for scenario planning. [[Risk]]-adjusted [[net present value]], for example, is computed from well-defined but not always known (or fixed) inputs. By imitating the performance of the project under evaluation, simulation can provide a distribution of NPV over a range of [[discounts and allowances|discount rates]] and other variables. Simulations are also often used to test a financial theory or the ability of a financial model.<ref>{{cite journal|last1=French|first1=Jordan|title=The one: A simulation of CAPM market returns|journal=The Journal of Wealth Management|volume=20|issue=1|pages=126–147|doi=10.3905/jwm.2017.20.1.126|year=2017|doi-access=free}}</ref>

Simulations are frequently used in financial training to engage participants in experiencing various historical as well as fictional situations. There are stock market simulations, portfolio simulations, risk management simulations or models and forex simulations. Such simulations are typically based on [[stochastic asset model]]s. Using these simulations in a training program allows for the application of theory into a something akin to real life. As with other industries, the use of simulations can be technology or case-study driven.