Difference between revisions of "Financial model"

From ACT Wiki
Jump to: navigation, search
(Add link.)
(Add link.)
Line 23: Line 23:
 
* [[Shadow model]]
 
* [[Shadow model]]
 
* [[Simulation]]
 
* [[Simulation]]
 +
* [[Spreadsheet risk]]
 
* [[Stochastic]]
 
* [[Stochastic]]
  

Revision as of 15:46, 16 November 2020

A simplified representation of a financial situation, using selected assumptions.

Financial models are widely used in practice for valuation, and to support financial decisions and risk management.

Models are also an important tool in finance coaching and financial education.


In simple terms, a model:

  • Presents a financial calculation (or calculations)
  • In a way that enables the user to understand it and to challenge it, especially about its assumptions.


See also