Financial maths and Financial model: Difference between pages

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Financial maths is the systematic quantified analysis of:
A simplified representation of a financial situation, using selected assumptions.


* Financial instruments
Financial models are widely used in practice for valuation, and to support financial decisions and risk management.
* Financial risk
* Corporate value and
* The fundamentally important relationships between them.  


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


The most important benefit of working with these tools is developing the skill to identify assumptions, and the confidence to challenge them.


This is essential in practice because so many real life assumptions are unstated, unrecognised, and expensively or dangerously wrong.  
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.


=== Other student resources ===
[[Media:FMM_The_Treasurer_to_Nov_2015.pdf| Financial maths student articles in The Treasurer]]




== See also ==
== See also ==
* [[Annuity factor]]
* [[Ceteris paribus]]
* [[Capital asset pricing model]]
* [[Coaching]]
* [[Cross-currency interest rate swap]]
* [[Deterministic]]
* [[Day count conventions]]
* [[Financial modelling]]
* [[Discount rate]]
* [[Model]]
* [[Dividend valuation model]]
* [[Risk management]]
* [[Foreign exchange forward contract]]
* [[Four way equivalence model]]
* [[Interest rate parity]]
* [[Internal rate of return]]
* [[LIBOR]]
* [[MCT]]
* [[Present value]]
* [[Real option]]
* [[Rounding]]
* [[Rounding]]
* [[Swap points]]
* [[Sensitivity analysis]]
* [[Value at risk]]
* [[Simulation]]
* [[Stochastic]]
 
[[Category:The_business_context]]
[[Category:Corporate_finance]]
[[Category:Investment]]
[[Category:Long_term_funding]]
[[Category:Identify_and_assess_risks]]
[[Category:Manage_risks]]
[[Category:Risk_frameworks]]
[[Category:Risk_reporting]]
[[Category:Financial_products_and_markets]]
[[Category:Technology]]

Revision as of 09:35, 19 September 2019

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