Model

From ACT Wiki
Revision as of 16:02, 21 December 2020 by imported>Doug Williamson (Add links.)
Jump to navigationJump to search

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.


See also