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What are the differences between QRP and QPP?

April 26, 2017differences qpp qrp

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What are the differences between QRP and QPP?

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QPP and QRP use the same basic underlying analytics for calculating forward-looking Monte Carlo analysis. There are some differences between the two packages, however. The main difference is that QRP allows the user to run analysis using 1) pure historical data, 2) automatically-generated parameters, or 3) customized parameter sets. This means that you could run a portfolio with the basic parameters and then adjust any of the parameters by hand. QPP allows the user to adjust many parameters, but it is not as flexible in terms of user adjustments to parameters. QRP also allows the user to specify a shift in the projected risk and return of a portfolio (say, at retirement) and look at the impact of that shift on long-term outcomes. If you want to be able to adjust every parameter and see the impacts, QRP is the right choice. If you want to use largely automated parameter sets for risk/Beta/ etc., QPP is a cheaper alternative.