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== See also ==
== See also ==
* [[Decision tree]]
* [[Financial model]]
* [[Financial model]]
* [[Model risk]]
* [[Model risk]]

Revision as of 19:29, 5 May 2016

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.


See also