Model: Difference between revisions
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== See also == | == See also == | ||
* [[Decision tree]] | |||
* [[Financial model]] | * [[Financial model]] | ||
* [[Model risk]] | * [[Model risk]] | ||
Revision as of 19:29, 5 May 2016
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.
