Model: Difference between revisions

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imported>Doug Williamson
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imported>Doug Williamson
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''Spreadsheets and models.''
1.  ''Spreadsheets - financial models.''


A representation of a real situation using a selected set of simplifying assumptions and relationships.  
A representation of a real situation using a selected set of simplifying assumptions and relationships.  
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An important benefit of well-structured financial models is to facilitate sensitivity analysis and stress testing.
An important benefit of well-structured financial models is to facilitate sensitivity analysis and stress testing.
2.  ''Best practice - good practice.''
Something designed or selected as a good example to be followed.
For example, the OECD model tax convention.




== See also ==
== See also ==
* [[Agent based modelling]]
* [[Agent based modelling]]
* [[Best practice]]
* [[Binomial option pricing model]]
* [[Binomial option pricing model]]
* [[Black Scholes option pricing model]]
* [[Black Scholes option pricing model]]
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* [[Four way equivalence model]]
* [[Four way equivalence model]]
* [[Game]]
* [[Game]]
* [[Good practice]]
* [[Model risk]]
* [[Model risk]]
* [[Modelling]]
* [[Modelling]]

Revision as of 21:11, 4 July 2022

1. Spreadsheets - financial models.

A representation of a real situation using a selected set of simplifying assumptions and relationships.


In finance, financial models are widely used as tools for valuation and to support financial decisions.

An important benefit of well-structured financial models is to facilitate sensitivity analysis and stress testing.


2. Best practice - good practice.

Something designed or selected as a good example to be followed.

For example, the OECD model tax convention.


See also