From criticism to confirmation: a definitive examination of Running Musharakah model and its validity

What is it about?

Running Musharakah (RM) has been the second most financing facility in Pakistan. It has been the desire of business community to participate in sharing mode of financing however, RM has remained the central topic of the scholars regarding its validity. This paper has reviewed the criticism made by the scholars and has analyzed to profit distribution of RM model using Monte Carlo simulations and visualizing the resulting relationships in Tornado and Spider plots. It has provided interesting results which also verify claims made by critics.

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