In the Monte Carlo report why is the 2nd standard deviation below the mean sometimes smaller than the worst case value?
Worst case is the lowest value actually observed during the runs. The 2nd standard deviation is a statistical measure of how tightly the results are bunched around the mean. Computational results above the mean may be wider than results below the mean making the overall 2nd standard deviation wider than what is indicated by the observed cases below the mean. This distribution of results is supposed to be a normal distribution but because of the way the random asset return values are computed the results distribution may not be perfectly normal.
