Adam Hayes, Ph.D., CFA, is a financial writer with 15+ years Wall Street experience as a derivatives trader. Besides his extensive derivative trading expertise, Adam is an expert in economics and ...

Sensitivity analysis helps predict outcomes by varying key variables in financial models. It simplifies complex models, aids in understanding variable effects, and reduces uncertainty. This analysis ...

J.B. Maverick is an active trader, commodity futures broker, and stock market analyst 17+ years of experience, in addition to 10+ years of experience as a finance writer and book editor. Dr. JeFreda R ...

Capital budgeting refers to the process by which a business determines whether to take on a certain project. The analysis involves estimating the amount of money the business has to invest and the ...

WASHINGTON—The Federal Reserve will use an analysis of large banks’ ability to withstand various coronavirus-related recession scenarios as it forms policies on capital requirements, dividends and ...

Not All Methodologies for Financial Scenario Analy... Not All Methodologies for Financial Scenario Analysis Are the Same Types of Scenario Analysis Forecasting is a no-win situation. If you get it ...

Scenario analysis is a useful tool to get a sense of what long-term expectations are implied by any given stock price. Discounted cash flow models used improperly can cause overconfidence and a false ...

Like medieval merchants clinging to flat-earth maps, today's businesses risk purgatory in a climate-changing world by misusing scenario analysis. Here are seven common mistakes that undermine climate ...