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 to mean an exercise in either asset pricing or corporate finance, of a quantitative nature. It is about translating a set of hypotheses about the behavior of markets or agents into numerical predictions.[2] At the same time, "financial modeling" is a general term that means different things to different users; the reference usually relates either to accounting and corporate finance applications or to quantitative finance applications.
^Investopedia Staff (2020). "Financial Modeling".
^Low, R.K.Y.; Tan, E. (2016). "The Role of Analysts' Forecasts in the Momentum Effect" (PDF). International Review of Financial Analysis. 48: 67–84. doi:10.1016/j.irfa.2016.09.007.
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Financialmodeling is the task of building an abstract representation (a model) of a real world financial situation. This is a mathematical model designed...
value; see Financial risk management. Risk modeling is one of many subtasks within the broader area of financialmodeling. Risk modeling uses a variety...
name suggests, not all case studies are financialmodeling based; Many are business modeling or data modeling based. Stage points are available for: Task:...
science and deals with the data and algorithms that arise in financialmodeling. Financial engineering draws on tools from applied mathematics, computer...
quantitative finance and financial mathematics, is a field of applied mathematics, concerned with mathematical modeling in the financial field. In general,...
See Financialmodeling § Accounting for discussion. Financial management for IT services, financial management of IT assets and resources Financial Management...
/ steps of business modeling here, see Outline of finance § Financialmodeling. Arguably, the key aspect of preparing a financial forecast is predicting...
field is largely focused on the modeling of derivatives—with much emphasis on interest rate- and credit risk modeling—while other important areas include...
pricing models: a general comparison (Part 1)". Working paper, London School of Economics and Political Science. The Risks of FinancialModeling: VAR and...
motion models for financial markets are based on the work of Robert C. Merton and Paul A. Samuelson, as extensions to the one-period market models of Harold...
designatory letters, and to full CISI Chartered Member status. A FinancialModeling & Valuation Analyst (FMVA) has completed all the courses (minimum...
Non-stochastic models may be purely qualitative (for example, relating to social choice theory) or quantitative (involving rationalization of financial variables...
are efficient and accurate computation of fair values of financial securities and the modeling of stochastic time series. The birth of computational finance...
Foundations and FinancialModeling (3rd ed.). Wiley. ISBN 978-1119743767. Thomas E. Copeland; J. Fred Weston; Kuldeep Shastri (2004). Financial Theory and...
A financial sponsor is a private equity investment firm, particularly a private equity firm that engages in leveraged buyout transactions. In addition...
several areas are integrated or applied — such as portfolio management, financialmodeling, mergers and acquisitions, real options, and lately Fintech; in some...
values are then aggregated, returning the value in question. See: Financialmodeling § Accounting, and Valuation using discounted cash flows. (Note that...
Skewness risk in financialmodeling is the risk that results when observations are not spread symmetrically around an average value, but instead have a...
world for discussion of the mathematics; Financial engineering for the implementation; as well as Financialmodeling § Quantitative finance generally. This...
finance, multiple factor models are asset pricing models that can be used to estimate the discount rate for the valuation of financial assets. They are generally...
expected to learn database software "on the job"); see further under FinancialModeling. With seniority, often, analysts are expected to earn an MBA, having...
the FinancialModeling World Cup. Comparison of spreadsheet software Spreadmart FinancialModeling World Cup, online esport financialmodelling competition...
Bitemporal modeling is a specific case of temporal database information modeling technique designed to handle historical data along two different timelines...
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