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Financial Modelling
Financial modeling is the task of building an abstract representation (a model) of a real world financial situation. 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. 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. While there has been some debate in the industry as to the nature of financial modeling—whether it is a tradecraft, such as welding, or a science—the task of financial modeling has been gaining acceptance ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Abstraction
Abstraction in its main sense is a conceptual process wherein general rules and concepts are derived from the usage and classification of specific examples, literal ("real" or " concrete") signifiers, first principles, or other methods. "An abstraction" is the outcome of this process—a concept that acts as a common noun for all subordinate concepts and connects any related concepts as a ''group'', ''field'', or ''category''.Suzanne K. Langer (1953), ''Feeling and Form: a theory of art developed from Philosophy in a New Key'' p. 90: " Sculptural form is a powerful abstraction from actual objects and the three-dimensional space which we construe ... through touch and sight." Conceptual abstractions may be formed by filtering the information content of a concept or an observable phenomenon, selecting only those aspects which are relevant for a particular purpose. For example, abstracting a leather soccer ball to the more general idea of a ball selects only the information on ge ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
