Quantitative Methods for Finance and Investments [Paperback]

Quantitative Methods for Finance and Investments ensures that readers come away from reading it with a reasonable degree of comfort and proficiency in applying elementary mathematics to several types of financial analysis. All of the methodology in this book is geared toward the development, implementation, and analysis of financial models to solve financial problems.

Acknowledgments.

1. Introduction and Overview:.

The Importance of Mathematics in Finance.

Mathematical and Computer Modeling in Finance.

Money, Securities, and Markets.

Time Value, Risk, Arbitrage, and Pricing.

The Organization of this Book.

2. Review of Elementary Mathematics: Functions and Operations:.

Introduction.

Variables, Equations, and Inequalities.

Exponents.

The Order of Arithmetic Operations and the Rules of Algebra.

The Number e.

Logarithms.

Subscripts.

Summations.

Double Summations.

Products.

Factorial Products.

Permutations and Combinations.

Exercises.

Appendix: An Introduction to the ExcelT Spreadsheet.

3. A Review of Elementary Mathematics: Algebra and Solving Equations:.

Algebraic Manipulations.

The Quadratic Formula.

Solving Systems of Equations that Contain Multiple Variables.

Geometric Expansions.

Functions and Graphs.

Exercises.

Appendix: Solving Systems of Equations on a Spreadsheet.

4. The Time Value olCÜ