doughnut 0.0.3 → 0.0.4

checksums.yaml

@@ -1,7 +1,7 @@
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data/Rakefile

@@ -1,2 +1,3 @@
 require "bundler/gem_tasks"
 
+import "./lib/doughnut/tasks/retirement.rake"

data/doughnut.gemspec

@@ -22,4 +22,5 @@ Gem::Specification.new do |spec|
   spec.add_development_dependency "rake"
   spec.add_development_dependency "rspec"
   spec.add_runtime_dependency "descriptive_statistics"
+  spec.add_runtime_dependency "rubystats"
 end

data/lib/doughnut.rb

@@ -1,6 +1,11 @@
-require "doughnut/expenses"
-require "doughnut/income"
-require "doughnut/retirement_calculator"
+require "doughnut/monte_carlo/population_factory"
+require "doughnut/monte_carlo/population_tester"
+require "doughnut/monte_carlo/predicted_return"
+
+require "doughnut/retirement_calculator/expenses"
+require "doughnut/retirement_calculator/income"
+require "doughnut/retirement_calculator/retirement_calculator"
+
 require "doughnut/version"
 
 module Doughnut

data/lib/doughnut/monte_carlo/population_factory.rb

@@ -0,0 +1,31 @@
+module Doughnut
+
+  class PopulationFactory
+
+    def initialize(list_of_assets)
+      @num_genomes = 10
+      @list_of_assets = list_of_assets
+    end
+
+    def build_random_population
+      Array.new(@num_genomes, random_genome)
+    end
+
+    private
+
+    def random_genome
+      output = []
+      @list_of_assets.each_with_index do |asset, indx|
+        output << asset.merge!({fraction: gene_fractions[indx]})
+      end
+    end
+
+    def gene_fractions
+      fracs = Array.new(@list_of_assets.length, rand)
+      s = fracs.sum
+      fracs.map { |x| x/s }
+    end
+
+  end
+
+end

data/lib/doughnut/monte_carlo/predicted_return.rb

@@ -0,0 +1,19 @@
+require "rubystats"
+
+module Doughnut
+
+  class PredictedReturn
+
+    def initialize(avg_return = 0, standard_deviation = 0)
+      @avg_return = avg_return
+      @standard_deviation = standard_deviation
+    end
+
+    def return(num_data_points = 1)
+      return @avg_return if @standard_deviation == 0
+      Rubystats::NormalDistribution.new(@avg_return, @standard_deviation).rng
+    end
+
+  end
+
+end

data/lib/doughnut/{expenses.rb → retirement_calculator/expenses.rb}

@@ -9,14 +9,6 @@ module Doughnut
       @inflation_rate = 0.0322
     end
 
-    def future_expenses(death_date, discount_rate)
-      output = []
-      (Date.today..death_date).each do |mydate|
-        output << present_value(mydate, discount_rate) if is_last_day(mydate)
-      end
-      output
-    end
-
     def total_expenses(death_date, discount_rate)
       output = 0
       future_expenses(death_date, discount_rate).each do |h|
@@ -25,9 +17,17 @@ module Doughnut
       output
     end
 
+    def future_expenses(death_date, discount_rate)
+      output = []
+      (Date.today..death_date).each do |mydate|
+        output << present_value(mydate, discount_rate) if is_last_day_of_month(mydate)
+      end
+      output
+    end
+
     private
 
-    def is_last_day(mydate)
+    def is_last_day_of_month(mydate)
       mydate.month != mydate.next_day.month
     end
 

data/lib/doughnut/{income.rb → retirement_calculator/income.rb}

@@ -12,22 +12,14 @@ module Doughnut
     def future_income(death_date, discount_rate)
       output = []
       (Date.today..death_date).each do |mydate|
-        output << present_value(mydate, discount_rate) if is_last_day(mydate)
-      end
-      output
-    end
-
-    def total_income(death_date, discount_rate)
-      output = 0
-      future_expenses(death_date, discount_rate).each do |h|
-        output += h[:income]
+        output << present_value(mydate, discount_rate) if is_last_day_of_month(mydate)
       end
       output
     end
 
     private
 
-    def is_last_day(mydate)
+    def is_last_day_of_month(mydate)
       mydate.month != mydate.next_day.month
     end
 

data/lib/doughnut/{retirement_calculator.rb → retirement_calculator/retirement_calculator.rb}

@@ -3,15 +3,19 @@ module Doughnut
   class RetirementCalculator
 
     attr_accessor :death_date, :portfolio_return
+    attr_accessor :current_net_worth
 
-    def initialize
+    def initialize(net_worth = 207000)
       @death_date = Date.new(2067,7,19)
+      @current_net_worth = net_worth
       @portfolio_return = 0.1
     end
 
     def retirement_date(total_expenses, monthly_incomes)
       return Date.today if total_expenses == 0
+      return Date.today if total_expenses < @current_net_worth
       return @death_date if monthly_incomes.length == 0
+      monthly_incomes.insert( 0, {date: Date.today, income: @current_net_worth} )
       running_income = 0
       monthly_incomes.each do |h|
         running_income += h[:income]

data/lib/doughnut/tasks/retirement.rake

@@ -0,0 +1,14 @@
+require "doughnut/retirement_calculator/expenses"
+require "doughnut/retirement_calculator/income"
+require "doughnut/retirement_calculator/retirement_calculator"
+
+task :calculate_retirement do
+  e = Expenses.new
+  i = Income.new
+  r = RetirementCalculator.new
+  death_date = r.death_date
+  discount_rate = r.portfolio_return
+  e_tot = e.total_expenses(death_date, discount_rate)
+  i_tot = i.future_income(death_date, discount_rate)
+  puts "#{r.retirement_date(e_tot, i_tot)}"
+end

data/lib/doughnut/version.rb

@@ -1,3 +1,3 @@
 module Doughnut
-  VERSION = "0.0.3"
+  VERSION = "0.0.4"
 end

data/spec/monte_carlo/population_factory_spec.rb

@@ -0,0 +1,121 @@
+require "spec_helper"
+
+module Doughnut
+
+  describe PopulationFactory do
+
+    describe "building a population of random genomes" do
+
+      context "one input" do
+
+        before(:each) do
+          @population = PopulationFactory.new( [{name: "X", avg_return: 1, standard_deviation: 5}] ).build_random_population
+        end
+
+        it "returns ten genomes" do
+          expect(@population.length).to eq 10
+        end
+
+        it "each genome has a length equal to one" do
+          @population.each do |genome|
+            expect(genome.length).to eq 1
+          end
+        end
+
+        it "each gene in a given genome has a name" do
+          @population.each do |genome|
+            genome.each do |gene|
+              expect(gene[:name]).not_to be nil
+            end
+          end
+        end
+
+        it "each gene in a given genome has an average return" do
+          @population.each do |genome|
+            genome.each do |gene|
+              expect(gene[:avg_return]).to eq 1
+            end
+          end
+        end
+
+        it "each gene in a given genome has a standard deviation" do
+          @population.each do |genome|
+            genome.each do |gene|
+              expect(gene[:standard_deviation]).to eq 5
+            end
+          end
+        end
+
+        it "each gene in a given genome has a fraction of one" do
+          @population.each do |genome|
+            genome.each do |gene|
+              expect(gene[:fraction]).to eq 1
+            end
+          end
+        end
+
+      end
+
+      context "multiple inputs" do
+
+        before(:each) do
+          @population = PopulationFactory.new( [{name: "X", avg_return: 1, standard_deviation: 5},{name: "Y", avg_return: 3, standard_deviation: 7}] ).build_random_population
+        end
+
+        it "returns ten genomes" do
+          expect(@population.length).to eq 10
+        end
+
+        it "each genome has a length greater than one" do
+          @population.each do |genome|
+            expect(genome.length).to eq 2
+          end
+        end
+
+        it "each gene in a given genome has a name" do
+          @population.each do |genome|
+            genome.each do |gene|
+              expect(gene[:name]).not_to be nil
+            end
+          end
+        end
+
+        it "each gene in a given genome has an average return" do
+          @population.each do |genome|
+            genome.each do |gene|
+              expect(gene[:avg_return] == 1 || gene[:avg_return] == 3).to be true
+            end
+          end
+        end
+
+        it "each gene in a given genome has a standard deviation" do
+          @population.each do |genome|
+            genome.each do |gene|
+              expect(gene[:standard_deviation] == 5 || gene[:standard_deviation] == 7).to be true
+            end
+          end
+        end
+
+        it "each fraction is NOT equal to one" do
+          @population.each do |genome|
+            genome.each do |gene|
+              expect(gene[:fraction]).not_to eq 1
+            end
+          end
+        end
+
+        it "the sum of all fractions equals one" do
+          @population.each do |genome|
+            sum = 0
+            genome.each { |gene| sum += gene[:fraction] }
+            expect(sum).to eq 1
+          end
+        end
+
+      end
+
+    end
+
+  end
+
+end

data/spec/monte_carlo/population_tester.rb

@@ -0,0 +1,14 @@
+require "spec_helper"
+
+module Doughnut
+
+  describe PopulationTester do
+
+    it "returns no population if it is given no input" do
+      t = PopulationTester.new
+      expect(t.compete).to eq []
+    end
+
+  end
+
+end

data/spec/monte_carlo/predicted_return_spec.rb

@@ -0,0 +1,78 @@
+require "spec_helper"
+require "descriptive_statistics"
+
+module Doughnut
+
+  describe PredictedReturn do
+
+    describe "#return" do
+
+      context "boundary conditions" do
+
+        it "gives zero predicted return if there are no inputs" do
+          expect(PredictedReturn.new.return).to eq 0
+        end
+
+        it "gives zero predicted return if both average return and standard deviation are zero" do
+          expect(PredictedReturn.new(0,0).return).to eq 0
+        end
+
+        it "gives the average return if standard deviation is zero" do
+          expect(PredictedReturn.new(0.5,0).return).to eq 0.5
+        end
+
+        it "gives a range of returns if the standard deviation is zero" do
+          expect(PredictedReturn.new(0,0.0001).return).to be > -1
+          expect(PredictedReturn.new(0,0.0001).return).to be < 1
+        end
+
+      end
+
+      context "Gaussian outputs" do
+
+        before(:each) do
+          @simulation = PredictedReturn.new(0.4, 0.1)
+          @thin_sim = PredictedReturn.new(0.8, 0.00000000001)
+        end
+
+        it "the data points should be unique" do
+          output = []
+          50.times { output << @simulation.return }
+          expect(output.uniq.length).to eq 50
+        end
+
+        it "the data points should have the given mean" do
+          output = []
+          50.times { output << @simulation.return }
+          expect(output.mean).to be > 0.25
+          expect(output.mean).to be < 0.45
+        end
+
+        it "the data points should have the given standard deviation" do
+          output = []
+          50.times { output << @simulation.return }
+          expect(output.standard_deviation).to be > 0.0
+          expect(output.standard_deviation).to be < 0.2
+        end
+
+        it "creates data points near the average return if the standard deviation is small" do
+          output = []
+          50.times { output << @thin_sim.return }
+          expect(output.mean).to be > 0.7999
+          expect(output.mean).to be < 0.8001
+        end
+
+        it "creates closely clustered data points if the standard deviation is small" do
+          output = []
+          50.times { output << @thin_sim.return }
+          expect(output.standard_deviation).to be > 0.0000
+          expect(output.standard_deviation).to be < 0.0002
+        end
+
+      end
+
+    end
+
+  end
+
+end

data/spec/retirement_calculator/retirement_calculator_spec.rb

@@ -0,0 +1,142 @@
+require "spec_helper"
+
+module Doughnut
+
+  describe RetirementCalculator do
+
+    describe "parameters" do
+
+      before(:each) do
+        @retire = RetirementCalculator.new
+      end
+
+      context "defaults" do
+
+        it "returns a death date of 80 years old" do
+          expect(@retire.death_date).to eq Date.new(2067,7,19)
+        end
+
+        it "returns average portfolio return of 10%" do
+          expect(@retire.portfolio_return).to eq 0.1
+        end
+
+        it "returns a current net worth of 207000" do
+          expect(@retire.current_net_worth).to eq 207000
+        end
+
+        it "updates the death date" do
+          @retire.death_date = Date.new(2001,3,7)
+          expect(@retire.death_date).to eq Date.new(2001,3,7)
+        end
+
+        it "updates the average portfolio return" do
+          @retire.portfolio_return = 0.99
+          expect(@retire.portfolio_return).to eq 0.99
+        end
+
+        it "updates the current net worth" do
+          @retire.current_net_worth = 100
+          expect(@retire.current_net_worth).to eq 100
+        end
+
+        it "sets the net worth on initialization" do
+          worth = RetirementCalculator.new(200).current_net_worth
+          expect(worth).to eq 200
+        end
+
+      end
+
+    end
+
+    describe "retirement date with no initial net worth" do
+
+      before(:each) do
+        @retire = RetirementCalculator.new(0)
+      end
+
+      it "returns today's date if there are no monthly expenses or incomes" do
+        expect(@retire.retirement_date(0,[])).to eq Date.today
+      end
+
+      it "returns today's date if there are no monthly expenses but positive incomes" do
+        expect(@retire.retirement_date(0, [{date: Date.new(2012,1,2), income: 100}])).to eq Date.today
+      end
+
+      it "returns the death date if there is no monthly income" do
+        expect(@retire.retirement_date(1,[])).to eq Date.new(2067,7,19)
+      end
+
+      it "returns the date of earned income if PV(income) > PV(expenses)" do
+        params = [{:date => Date.new(2040,1,2), :income => 2000}]
+        expect(@retire.retirement_date(1000, params)).to eq Date.new(2040,1,2)
+      end
+
+      it "returns the date of earned income if PV(income) = PV(expenses)" do
+        params = [{:date => Date.new(2041,2,8), :income => 1000}]
+        expect(@retire.retirement_date(1000, params)).to eq Date.new(2041,2,8)
+      end
+
+      it "returns the date of earned income if PV(income) > PV(expenses) for multiple incomes" do
+        params = [{:date => Date.new(2040,1,2), :income => 999}, {:date => Date.new(2049,7,8), :income => 1000}]
+        expect(@retire.retirement_date(1000, params)).to eq Date.new(2049,7,8)
+      end
+
+      it "returns the date of earned income if PV(income) = PV(expenses) for multiple incomes" do
+        params = [{:date => Date.new(2040,1,2), :income => 999}, {:date => Date.new(2049,7,8), :income => 1}]
+        expect(@retire.retirement_date(1000, params)).to eq Date.new(2049,7,8)
+      end
+
+    end
+
+    describe "retirement date with non-zero initial net worth" do
+
+      before(:each) do
+        @retire = RetirementCalculator.new(1000)
+      end
+
+      it "returns today's date if there are no monthly expenses or incomes" do
+        expect(@retire.retirement_date(0,[])).to eq Date.today
+      end
+
+      it "returns today's date if there are no monthly expenses but positive incomes" do
+        expect(@retire.retirement_date(0, [{date: Date.new(2011,1,2), income: 100}])).to eq Date.today
+      end
+
+      it "returns today's if there is no monthly income, but net worth exceeds expenses" do
+        expect(@retire.retirement_date(800,[])).to eq Date.today
+      end
+
+      it "returns the death date if there is no monthly income and net worth is less than expenses" do
+        expect(@retire.retirement_date(2000,[])).to eq Date.new(2067,7,19)
+      end
+
+      it "returns the date of earned income if current_net_worth + PV(income) > PV(expenses) (test 1)" do
+        params = [{:date => Date.new(2040,1,2), :income => 2000}]
+        expect(@retire.retirement_date(1100, params)).to eq Date.new(2040,1,2)
+      end
+
+      it "returns the date of earned income if current_net_worth + PV(income) > PV(expenses) (test 2)" do
+        params = [{:date => Date.new(2032,1,5), :income => 980}]
+        expect(@retire.retirement_date(1500, params)).to eq Date.new(2032,1,5)
+      end
+
+      it "returns the date of earned income if current_net_worth + PV(income) = PV(expenses)" do
+        params = [{:date => Date.new(2021,8,8), :income => 1000}]
+        expect(@retire.retirement_date(2000, params)).to eq Date.new(2021,8,8)
+      end
+
+      it "returns the date of earned income if current_net_worth + PV(income) > PV(expenses) for multiple incomes" do
+        params = [{:date => Date.new(2040,1,2), :income => 999}, {:date => Date.new(2049,7,8), :income => 1000}]
+        expect(@retire.retirement_date(2500, params)).to eq Date.new(2049,7,8)
+      end
+
+      it "returns the date of earned income if current_net_worth + PV(income) = PV(expenses) for multiple incomes" do
+        params = [{:date => Date.new(2040,1,2), :income => 999}, {:date => Date.new(2049,7,8), :income => 1}]
+        expect(@retire.retirement_date(2000, params)).to eq Date.new(2049,7,8)
+      end
+
+    end
+
+  end
+
+end

metadata

@@ -1,14 +1,14 @@
 --- !ruby/object:Gem::Specification
 name: doughnut
 version: !ruby/object:Gem::Version
-  version: 0.0.3
+  version: 0.0.4
 platform: ruby
 authors:
 - Cyrus Vandrevala
 autorequire: 
 bindir: bin
 cert_chain: []
-date: 2015-05-21 00:00:00.000000000 Z
+date: 2015-06-01 00:00:00.000000000 Z
 dependencies:
 - !ruby/object:Gem::Dependency
   name: bundler
@@ -66,6 +66,20 @@ dependencies:
     - - ">="
       - !ruby/object:Gem::Version
         version: '0'
+- !ruby/object:Gem::Dependency
+  name: rubystats
+  requirement: !ruby/object:Gem::Requirement
+    requirements:
+    - - ">="
+      - !ruby/object:Gem::Version
+        version: '0'
+  type: :runtime
+  prerelease: false
+  version_requirements: !ruby/object:Gem::Requirement
+    requirements:
+    - - ">="
+      - !ruby/object:Gem::Version
+        version: '0'
 description: ''
 email:
 - cyrus.vandrevala@gmail.com
@@ -80,13 +94,20 @@ files:
 - Rakefile
 - doughnut.gemspec
 - lib/doughnut.rb
-- lib/doughnut/expenses.rb
-- lib/doughnut/income.rb
-- lib/doughnut/retirement_calculator.rb
+- lib/doughnut/monte_carlo/population_factory.rb
+- lib/doughnut/monte_carlo/population_tester.rb
+- lib/doughnut/monte_carlo/predicted_return.rb
+- lib/doughnut/retirement_calculator/expenses.rb
+- lib/doughnut/retirement_calculator/income.rb
+- lib/doughnut/retirement_calculator/retirement_calculator.rb
+- lib/doughnut/tasks/retirement.rake
 - lib/doughnut/version.rb
-- spec/expenses_spec.rb
-- spec/income_spec.rb
-- spec/retirement_calculator_spec.rb
+- spec/monte_carlo/population_factory_spec.rb
+- spec/monte_carlo/population_tester.rb
+- spec/monte_carlo/predicted_return_spec.rb
+- spec/retirement_calculator/expenses_spec.rb
+- spec/retirement_calculator/income_spec.rb
+- spec/retirement_calculator/retirement_calculator_spec.rb
 - spec/spec_helper.rb
 homepage: ''
 licenses:
@@ -113,7 +134,10 @@ signing_key:
 specification_version: 4
 summary: Generate statistics for a personal portfolio.
 test_files:
-- spec/expenses_spec.rb
-- spec/income_spec.rb
-- spec/retirement_calculator_spec.rb
+- spec/monte_carlo/population_factory_spec.rb
+- spec/monte_carlo/population_tester.rb
+- spec/monte_carlo/predicted_return_spec.rb
+- spec/retirement_calculator/expenses_spec.rb
+- spec/retirement_calculator/income_spec.rb
+- spec/retirement_calculator/retirement_calculator_spec.rb
 - spec/spec_helper.rb

data/spec/retirement_calculator_spec.rb

@@ -1,75 +0,0 @@
-require "spec_helper"
-
-module Doughnut
-
-  describe RetirementCalculator do
-
-    before(:each) do
-      @retire = RetirementCalculator.new
-    end
-
-    describe "parameters" do
-
-      context "defaults" do
-
-        it "returns a death date of 80 years old" do
-          expect(@retire.death_date).to eq Date.new(2067,7,19)
-        end
-
-        it "returns average portfolio return of 10%" do
-          expect(@retire.portfolio_return).to eq 0.1
-        end
-
-        it "updates the death date" do
-          @retire.death_date = Date.new(2001,3,7)
-          expect(@retire.death_date).to eq Date.new(2001,3,7)
-        end
-
-        it "updates the average portfolio return" do
-          @retire.portfolio_return = 0.99
-          expect(@retire.portfolio_return).to eq 0.99
-        end
-
-      end
-
-    end
-
-    describe "retirement date" do
-
-      it "returns today's date if there are no monthly expenses or incomes" do
-        expect(@retire.retirement_date(0,[])).to eq Date.today
-      end
-
-      it "returns today's date if there are no monthly expenses but positive incomes" do
-        expect(@retire.retirement_date(0, [{date: Date.new(2012,1,2), income: 100}])).to eq Date.today
-      end
-
-      it "returns the death date if there is no monthly income" do
-        expect(@retire.retirement_date(1,[])).to eq Date.new(2067,7,19)
-      end
-
-      it "returns the date of earned income if PV(income) > PV(expenses)" do
-        params = [{:date => Date.new(2040,1,2), :income => 2000}]
-        expect(@retire.retirement_date(1000, params)).to eq Date.new(2040,1,2)
-      end
-
-      it "returns the date of earned income if PV(income) = PV(expenses)" do
-        params = [{:date => Date.new(2041,2,8), :income => 1000}]
-        expect(@retire.retirement_date(1000, params)).to eq Date.new(2041,2,8)
-      end
-
-      it "returns the date of earned income if PV(income) > PV(expenses) for multiple incomes" do
-        params = [{:date => Date.new(2040,1,2), :income => 999}, {:date => Date.new(2049,7,8), :income => 1000}]
-        expect(@retire.retirement_date(1000, params)).to eq Date.new(2049,7,8)
-      end
-
-      it "returns the date of earned income if PV(income) = PV(expenses) for multiple incomes" do
-        params = [{:date => Date.new(2040,1,2), :income => 999}, {:date => Date.new(2049,7,8), :income => 1}]
-        expect(@retire.retirement_date(1000, params)).to eq Date.new(2049,7,8)
-      end
-
-    end
-
-  end
-
-end