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Model risk |
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Model risk Risk of loss arising from valuing financial instruments with a model that is inaccurate (e.g. makes incorrect underlying assumptions, does not capture all scenarios that could occur in reality, or fails under extreme market conditions). Also known as model uncertainty. Want to thank TFD for its existence? Tell a friend about us, add a link to this page, add the site to iGoogle, or visit the webmaster's page for free fun content. |
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