Model: Difference between revisions
From ACT Wiki
Jump to navigationJump to search
imported>Doug Williamson (Add link.) |
imported>Doug Williamson (Add links.) |
||
Line 10: | Line 10: | ||
* [[Decision tree]] | * [[Decision tree]] | ||
* [[Financial model]] | * [[Financial model]] | ||
* [[Four-corner model]] | |||
* [[Model risk]] | * [[Model risk]] | ||
* [[Modelling]] | * [[Modelling]] | ||
Line 16: | Line 17: | ||
* [[Sensitivity analysis]] | * [[Sensitivity analysis]] | ||
* [[Stress test]] | * [[Stress test]] | ||
* [[Three-corner model]] |
Revision as of 14:42, 20 June 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.