Model: Difference between revisions
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imported>Doug Williamson (Add stress testing.) |
imported>Doug Williamson (Add link.) |
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* [[Sensitivity analysis]] | * [[Sensitivity analysis]] | ||
* [[Shadow model]] | * [[Shadow model]] | ||
* [[Spreadsheet]] | |||
* [[Stress test]] | * [[Stress test]] | ||
* [[Three-corner model]] | * [[Three-corner model]] |
Revision as of 15:45, 21 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.