The aim of this paper is to provide a modeling of capital transfer between a portfolio consisted by two assets. For this purpose we use the Arrhenius Equation, which is a modeling tool for the specific modeling. We provide a stochastic differential equation of the Arrhenuis equation. We consider...

Most finance textbooks talk about the benefits of conducting sensitivity and/or Monte Carlo simulation analyses in financial modeling, but mostly limit coverage to commenting on these techniques in passing. This is particularly true when it comes to simulation analysis, which typically requires...