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What is model risk?

The model risk is the risk associated with a model investment not paying off the way it was predicted to according to the model demonstrations. Model risk is an operational risk and calculated ahead of time. Model risk does not often take into account future market conditions or financial changes.

Other Financial Terms and Vocabulary

Data is provided for informational purposes only, and is not intended for trading purposes. Although data are gathered from sources believed to be reliable, Fund Mojo and its content providers cannot guarantee completeness and accuracy. Performance data quoted represents past performance. Fund Mojo and its content providers accept no liability for reliance on this data.