Question: One problem with using simulations to optimize portfolio weights is that: The simulated returns may have a distribution that does not reflect the reality of

One problem with using simulations to optimize portfolio weights is that:

The simulated returns may have a distribution that does not reflect the reality of the returns that are simulated.

We use too many simulations so our answer may be incorrect.

There are no problems with simulated returns.

Returns of differnt assets are independent and in simulations we used non-zero correlations.

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