A predetermined model is used to evaluate solvency and potential for failure in corporations seeking credit. It considers various variables and uses regression analysis to determine the probability of default. The model also considers the borrower’s financial condition, industry, and future projections. A predetermined model is a medium to evaluate solvency and the potential for […]
Volatility models predict times of uncertainty and potential disruption to trading practices, helping businesses remain competitive. The ARCH-GARCH and stochastic volatility models use white noise to determine volatility. Understanding volatility is important for investors to make profitable decisions. While not always accurate, volatility models are common and their accuracy is expected to improve with technological […]
