Search results
Results from the WOW.Com Content Network
Financial modeling is the task of building an abstract representation (a model) of a real world financial situation. [1] This is a mathematical model designed to represent (a simplified version of) the performance of a financial asset or portfolio of a business, project , or any other investment.
These people become known as "financial engineers" ("quant" is a term that includes both rocket scientists and financial engineers, as well as quantitative portfolio managers). [13] This led to a second major extension of the range of computational methods used in finance, also a move away from personal computers to mainframes and ...
Financial risk modeling is the use of formal mathematical and econometric techniques to measure, monitor and control the market risk, credit risk, and operational risk on a firm's balance sheet, on a bank's accounting ledger of tradeable financial assets, or of a fund manager's portfolio value; see Financial risk management. Risk modeling is ...
Monte Carlo methods are used in corporate finance and mathematical finance to value and analyze (complex) instruments, portfolios and investments by simulating the various sources of uncertainty affecting their value, and then determining the distribution of their value over the range of resultant outcomes.
Capital asset pricing model; Carhart four-factor model; Carr–Madan formula; Chan–Karolyi–Longstaff–Sanders process; Chen model; Cheyette model; Constant elasticity of variance model; Consumption-based capital asset pricing model; Cox–Ingersoll–Ross model
It provides courses and certifications in financial modeling, valuation, and other corporate finance topics. This includes the skills CFI deems important for modern finance - such as Microsoft Excel, presentation and visuals - as well as underlying knowledge of accounting and business strategy.
The general structure of any financial model is standard: (i) input (ii) calculation algorithm (iii) output; see Financial forecast.While the output for a project finance model is more or less uniform, and the calculation is predetermined by accounting rules, the input is highly project-specific.
Historical simulation in finance's value at risk (VaR) analysis is a procedure for predicting the value at risk by 'simulating' or constructing the cumulative distribution function (CDF) of assets returns over time assuming that future returns will be directly sampled from past returns.