Business and Personal Finance Dictionary
# A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
- MARKET VALUE SIMULATION
The process of generating multiple forecasts for future interest rate scenarios and then discounting the estimated cash flows anticipated under those rate scenarios. The results of market value simulation are a range of forecasted market values of equity for both current and potential rate risk exposures. Comparisons of these forecasted MVPE values reveal the sensitivity of MVPE to changes in rates.Back