easy · Quantitative Finance

What is the primary objective of employing variance-reduction techniques like antithetic variates in Monte Carlo simulations?

1. To eliminate the need for generating independent standard normal random variables.
2. To increase the expected value of the estimator to match the true population mean.
3. To decrease the standard error of the estimate without increasing the number of simulated paths.
4. To change the convergence rate of the simulation from O(1/√(M)) to O(1/M).

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