org.akutan.faj.spv
Class SPV

java.lang.Object
  org.akutan.faj.spv.SPV

public class SPV
extends java.lang.Object

This class is used to compute the Stochastic Present Value of a spending plan, and thus the probability that the spending plan will exhaust resources prior to the end.

Constructor Summary

SPV()

Method Summary

double	compute(double er, double sigma, double spending, double medianLife) Computes the probability of spending the endowment prior to the end of life given the parameters specified.
static void	main(java.lang.String[] args) Test harness main to make sure calculations match the source paper.

Methods inherited from class java.lang.Object

clone, equals, finalize, getClass, hashCode, notify, notifyAll, toString, wait, wait, wait

Constructor Detail

SPV

public SPV()

Method Detail

compute

public double compute(double er,
                      double sigma,
                      double spending,
                      double medianLife)

Computes the probability of spending the endowment prior to the end of life given the parameters specified.

Parameters:

er - Expected return in percent

sigma - Expected portfolio standard deviation in percent

spending - Constant spending rate in percent

medianLife - Expected median lifetime

Returns:

The probablity that the endowment will hit PV = 0 during it's lifetime

main

public static void main(java.lang.String[] args)

Test harness main to make sure calculations match the source paper.

Parameters:

args -