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Model

Definition of 'Model'

A model or theory makes a series of simplifying assumptions from which it deduces how people will behave. It is a deliberate simplification of reality.

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Related Terms

Arbitrage Pricing Model CAPM Characteristics Line Factor Model Theoretical Value Accelerator Model Arbitrage Pricing Theory Black Scholes Capital Asset Pricing Model Data-Snooping Model Code for Directors Dealings Security Market Line Seperation Theorem

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