Quantitative Finance For Dummies

ISBN-13: 9781118769461 / Angielski / Miękka / 2016 / 416 str.

Steve Bell

Opis

An accessible, thorough introduction to quantitative finance Does the complex world of quantitative finance make you quiver? You're not alone It's a tough subject for even high-level financial gurus to grasp, but Quantitative Finance For Dummies offers plain-English guidance on making sense of applying mathematics to investing decisions. With this complete guide, you'll gain a solid understanding of futures, options and risk, and get up-to-speed on the most popular equations, methods, formulas and models (such as the Black-Scholes model) that are applied in quantitative finance. Also known as mathematical finance, quantitative finance is the field of mathematics applied to financial markets. It's a highly technical discipline--but almost all investment companies and hedge funds use quantitative methods. This fun and friendly guide breaks the subject of quantitative finance down to easily digestible parts, making it approachable for personal investors and finance students alike. With the help of Quantitative Finance For Dummies, you'll learn the mathematical skills necessary for success with quantitative finance, the most up-to-date portfolio and risk management applications and everything you need to know about basic derivatives pricing.

• Covers the core models, formulas and methods used in quantitative finance
• Includes examples and brief exercises to help augment your understanding of QF
• Provides an easy-to-follow introduction to the complex world of quantitative finance
• Explains how QF methods are used to define the current market value of a derivative security

Whether you're an aspiring quant or a top-tier personal investor, Quantitative Finance For Dummies is your go-to guide for coming to grips with QF/risk management.

Spis treści

Introduction 1

Part 1: Getting Started with Quantitative Finance 5

CHAPTER 1: Quantitative Finance Unveiled 7

CHAPTER 2: Understanding Probability and Statistics 27

CHAPTER 3: Taking a Look at Random Behaviours 45

Part 2: Tackling Financial Instruments 65

CHAPTER 4: Sizing Up Interest Rates, Shares and Bonds 67

CHAPTER 5: Exploring Options 85

CHAPTER 6: Trading Risk with Futures 99

Part 3: Investigating and Describing Market Behaviour 119

CHAPTER 7: Reading the Market′s Mood: Volatility 121

CHAPTER 8: Analysing All the Data 139

CHAPTER 9: Analysing Data Matrices: Principal Components 159

Part 4: Option Pricing 183

CHAPTER 10: Examining the Binomial and Black–Scholes Pricing Models 185

CHAPTER 11: Using the Greeks in the Black–Scholes Model 209

CHAPTER 12: Gauging Interest–Rate Derivatives 223

Part 5: Risk and Portfolio Management 239

CHAPTER 13: Managing Market Risk 241

CHAPTER 14: Comprehending Portfolio Theory 257

CHAPTER 15: Measuring Potential Losses: Value at Risk (VaR) 275

Part 6: Market Trading and Strategy 291

CHAPTER 16: Forecasting Markets 293

CHAPTER 17: Fitting Models to Data . 313

CHAPTER 18: Markets in Practice 329

Part 7: The Part of Tens 345

CHAPTER 19: Ten Key Ideas of Quantitative Finance 347

CHAPTER 20: Ten Ways to Ace Your Career in Quantitative Finance 355

Glossary 361

Index 369

O autorze

Steve Bell is a Quantitative Investment Researcher and Director at Research In Action. A highly experienced mathematical and statistical modeller, he is knowledgeable in energy markets and has a particular interest in systematic quantitative trading strategy development at any frequency.

Blurb

Learn the tools for investment success

Use portfolio and risk management applications

Sharpen your skills with useful exercises

Get acquainted with Quantitative Finance

Whether you′re an aspiring quant or a hands–on high–level investor, this book makes quantitative finance make sense. It demystifies futures, options, and risk; explains the core models, formulas, and methods; and provides essential mathematical tools. Accessible information and practical exercises prepare you for a successful role in finance!

Inside....

• Get a handle on QF models
• Work with random behaviours
• Grasp bond jargon
• Learn how to estimate probability
• Model interest rates
• Control risk
• Forecast like a pro
• Perfect your portfolio