Patent ID: 7162445

Claim:
A method for selecting a lowest variation assumption for asset valuation in order to limit risk using a computer system coupled to a data repository, said method comprising the steps of: determining a plurality of valuation methodologies for valuing a specific portfolio of assets; valuing the assets included within the portfolio utilizing the plurality of valuation methodologies including valuing each asset in the portfolio individually by segmenting the portfolio of assets into three valuation portions and by: (a) underwriting each asset included within a first portion of the asset portfolio based on a first valuation methodology from the plurality of valuation methodologies, (b) grouping and underwriting a sample of assets included within a second portion of the asset portfolio based on the first valuation methodology, (c) using the computer to statistically infer a value for each asset included within a third portion of the asset portfolio based on the first valuation methodology, and (d) repeating steps (a)–(c) for each valuation methodology included within the plurality of valuation methodologies; selecting a valuation methodology that produces a value for each of the assets included within the portfolio having a corresponding confidence level greater than a confidence level for any of the other valuation methodologies used for valuing the corresponding asset, wherein the confidence level represents a probability that the value assigned to the asset is accurate; and assigning values to the assets using the selected methodology.