Search results
Results from the WOW.Com Content Network
Aswath Damodaran. Aswath Damodaran (born 24 September 1957), [1] is a Professor of Finance at the Stern School of Business at New York University (Kerschner Family Chair in Finance Education), where he teaches corporate finance and equity valuation.
Essentially, the Monte Carlo method solves a problem by directly simulating the underlying (physical) process and then calculating the (average) result of the process. [ 1 ] This very general approach is valid in areas such as physics, chemistry, computer science etc. In finance, the Monte Carlo method is used to simulate the various sources of ...
v. t. e. Corporate finance is the area of finance that deals with the sources of funding, and the capital structure of businesses, the actions that managers take to increase the value of the firm to the shareholders, and the tools and analysis used to allocate financial resources. The primary goal of corporate finance is to maximize or increase ...
The First Chicago method takes account of payouts to the holder of specific investments in a company through the holding period under various scenarios; see Corporate finance § Quantifying uncertainty. Most often this methodology will involve the construction of: Once these have been constructed, the valuation proceeds as follows. [4] First ...
For Merton’s one-period portfolio problem, see Mutual fund separation theorem. Merton's portfolio problem is a problem in continuous-time finance and in particular intertemporal portfolio choice. An investor must choose how much to consume and must allocate their wealth between stocks and a risk-free asset so as to maximize expected utility.
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. Typically, then, financial modeling is understood ...
Leverage (finance) The use of borrowed funds in the purchase of an asset. In finance, leverage, also known as gearing, is any technique involving borrowing funds to buy an investment. Financial leverage is named after a lever in physics, which amplifies a small input force into a greater output force, because successful leverage amplifies the ...
Robert Cox Merton (born July 31, 1944) is an American economist, Nobel Memorial Prize in Economic Sciences laureate, and professor at the MIT Sloan School of Management, known for his pioneering contributions to continuous-time finance, especially the first continuous-time option pricing model, the Black–Scholes–Merton model. [2][3][4] In ...