Examlex
Name two macroeconomic variables that decline when an economy goes into recession, and name one macroeconomic variable that rises.
Monte Carlo Simulation
A statistical technique that uses random sampling and variability to calculate results for complex problems or models.
Probability Distributions
Mathematical representations that outline every potential value and their probabilities for a random variable across a specified interval.
Risk
The potential that an investment's actual return will differ from the expected return, encompassing the possibility of losing some or all of the original investment.
Real Option
A real option is a financial concept that represents the choice to undertake certain business initiatives, such as expanding, deferring, or abandoning a project, based on future opportunities.
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