org.akutan.faj.spv
Class SPV

java.lang.Object
  extended by 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 -