Model: Difference between revisions
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imported>Doug Williamson (Add link.) |
imported>Doug Williamson (Add stress testing.) |
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In finance, financial models are widely used as tools for valuation and to support financial decisions. | 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. | An important benefit of well-structured financial models is to facilitate sensitivity analysis and stress testing. | ||
Revision as of 00:29, 14 December 2020
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.