Sensitivity analysis: Difference between revisions

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imported>Doug Williamson
(Link with Quantitative techniques page.)
imported>Doug Williamson
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* [[Sensitivity]]
* [[Sensitivity]]
* [[Stress test]]
* [[Stress test]]
[[Category:The_business_context]]
[[Category:Corporate_finance]]
[[Category:Investment]]
[[Category:Long_term_funding]]
[[Category:Identify_and_assess_risks]]
[[Category:Manage_risks]]
[[Category:Risk_frameworks]]
[[Category:Risk_reporting]]
[[Category:Financial_products_and_markets]]

Revision as of 20:22, 23 February 2020

The refinement of a financial valuation or decision making model. Sensitivity analysis quantifies the degree of change in a valuation or other assessment, to changes in one or more of the inputs.

It can also be used to identify the break even point or points, at which a financial decision would change.


An important type of sensitivity analysis is stress testing.


See also