Tag Archives | Models

Capital Asset Pricing Model (CAPM) | Stock Market | Portfolio Management

William Sharpe (1964) published the Capital Asset Pricing Model (CAPM): According to CAPM, return of a portfolio is equal to the sum of risk-free rate of return and a risk premium that is proportional to its beta. As per this model, risk and return are linearly associated. Ri = Rf+ βi (Rm-Rf) Where, Ri = Risk free rate of return [...]

By |2017-07-11T04:45:57+05:30July 11, 2017|CAPM|Comments Off on Capital Asset Pricing Model (CAPM) | Stock Market | Portfolio Management

Mathematical Models Used by a Corporate Strategy Analyst | Management

The following points highlight the two important mathematical models used by a corporate strategy analyst to understand the long-term financial impact on the organisation. Model # 1. Quantitative and Qualitative Model: In many problems, the numerical or quantitative aspects of the various components of the problem are the most important. When we build a mathematical model and put into symbols [...]

By |2017-03-04T15:07:48+05:30March 4, 2017|Models|Comments Off on Mathematical Models Used by a Corporate Strategy Analyst | Management

Models Used for Making Business Decisions | Business Management

There are several basic kinds of models used for making business decisions. The models are:- 1. Analog Model 2. Iconic Model 3. Verbal Model 4. Mathematical Model. 1. Analog Model: An 'analog' model is a physical representation of the real world. A mock-up of an airplane is an analog model. An architect may place a mock-up of a building to [...]

By |2017-03-04T15:07:48+05:30March 4, 2017|Decision Making|Comments Off on Models Used for Making Business Decisions | Business Management
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