Monte Carlo Graph-Vol 3, page 332 EOC Question 12

For the monte carlo graph, there are 5 lines, and the legend indicates %.

90%

75%

50%

25%

10%

I got this question wrong because I misunderstood the meaning of the %.

Can someone help me get my mind around my understanding that “90% means 90% probability the portfolio will reach that value”

it is wealth percentile, not percent.

90 percentile - means 10% of the time values are above it… not the other way around.

perfect, makes total sense now. thx cp