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9781118769461

Quantitative Finance for Dummies

by
  • ISBN13:

    9781118769461

  • ISBN10:

    1118769465

  • Edition: 1st
  • Format: Paperback
  • Copyright: 2016-08-08
  • Publisher: For Dummies
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Supplemental Materials

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Summary

An accessible introduction to quantitative finance by the numbers--for students, professionals, and personal investors

The world of quantitative finance is complex, and sometimes even high-level financial experts have difficulty grasping it. 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 become familiar with 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 about applying mathematics and probability to financial markets, and involves using mathematical models to help make investing decisions. It's a highly technical discipline--but almost all investment companies and hedge funds use quantitative methods.

The book breaks down the subject of quantitative finance into easily digestible parts, making it approachable for personal investors, finance students, and professionals working in the financial sector--especially in banking or hedge funds who are interested in what their quant (quantitative finance professional) colleagues are up to. This user-friendly guide will help you even if you have no previous experience of quantitative finance or even of the world of finance itself.

With the help of Quantitative Finance For Dummies, you'll learn the mathematical skills necessary for success with quantitative finance and tips for enhancing your career in quantitative finance.

Get your own copy of this handy reference guide and discover:

  • An easy-to-follow introduction to the complex world of quantitative finance
  • The core models, formulas, and methods used in quantitative finance
  • Exercises to help augment your understanding of QF
  • How QF methods are used to define the current market value of a derivative security
  • Real-world examples that relate quantitative finance to your day-to-day job
  • Mathematics necessary for success in investment and quantitative finance
  • Portfolio and risk management applications
  • Basic derivatives pricing

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

Author Biography

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.

Table of Contents

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

Supplemental Materials

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The New copy of this book will include any supplemental materials advertised. Please check the title of the book to determine if it should include any access cards, study guides, lab manuals, CDs, etc.

The Used, Rental and eBook copies of this book are not guaranteed to include any supplemental materials. Typically, only the book itself is included. This is true even if the title states it includes any access cards, study guides, lab manuals, CDs, etc.

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