{"product_id":"quantitative-methods-for-finance-and-investments-isbn-9780631223399","title":"Quantitative Methods for Finance and Investments","description":"\u003cp\u003e\u003ci\u003eQuantitative Methods for Finance and Investments\u003c\/i\u003e 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.\u003c\/p\u003e \u003cp\u003ePreface\u003c\/p\u003e \u003cp\u003eAcknowledgments\u003c\/p\u003e \u003cp\u003e\u003cb\u003e1 Introduction and Overview 1\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e1.1 The importance of mathematics in finance 1\u003c\/p\u003e \u003cp\u003e1.2 Mathematical and computer modeling in finance 2\u003c\/p\u003e \u003cp\u003e1.3 Money, securities, and markets 3\u003c\/p\u003e \u003cp\u003e1.4 Time value, risk, arbitrage, and pricing 5\u003c\/p\u003e \u003cp\u003e1.5 The organization of this book 6\u003c\/p\u003e \u003cp\u003e\u003cb\u003e2 A Review of Elementary Mathematics: Functions and Operations 7\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e2.1 Introduction 7\u003c\/p\u003e \u003cp\u003e2.2 Variables, equations, and inequalities 7\u003c\/p\u003e \u003cp\u003e2.3 Exponents 8\u003c\/p\u003e \u003cp\u003eApplication 2.1: Interest and future value 9\u003c\/p\u003e \u003cp\u003e2.4 The order of arithmetic operations and the rules of algebra 10\u003c\/p\u003e \u003cp\u003eApplication 2.2: Initial deposit amounts 11\u003c\/p\u003e \u003cp\u003e2.5 The number e 11\u003c\/p\u003e \u003cp\u003e2.6 Logarithms 12\u003c\/p\u003e \u003cp\u003eApplication 2.3: The time needed to double your money 13\u003c\/p\u003e \u003cp\u003e2.7 Subscripts 14\u003c\/p\u003e \u003cp\u003e2.8 Summations 14\u003c\/p\u003e \u003cp\u003eApplication 2.4: Mean values 15\u003c\/p\u003e \u003cp\u003e2.9 Double summations 16\u003c\/p\u003e \u003cp\u003e2.10 Products 17\u003c\/p\u003e \u003cp\u003eApplication 2.5: Geometric means 17\u003c\/p\u003e \u003cp\u003eApplication 2.6: The term structure of interest rates 18\u003c\/p\u003e \u003cp\u003e2.11 Factorial products 19\u003c\/p\u003e \u003cp\u003eApplication 2.7: Deriving the number e 19\u003c\/p\u003e \u003cp\u003e2.12 Permutations and combinations 20\u003c\/p\u003e \u003cp\u003eExercises 21\u003c\/p\u003e \u003cp\u003eAppendix 2.A An introduction to the Excel™ spreadsheet 23\u003c\/p\u003e \u003cp\u003e\u003cb\u003e3 A Review of Elementary Mathematics: Algebra and Solving Equations 25\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e3.1 Algebraic manipulations 25\u003c\/p\u003e \u003cp\u003eApplication 3.1: Purchase power parity 27\u003c\/p\u003e \u003cp\u003eApplication 3.2: Finding break-even production levels 28\u003c\/p\u003e \u003cp\u003eApplication 3.3: Solving for spot and forward interest rates 29\u003c\/p\u003e \u003cp\u003e3.2 The quadratic formula 29\u003c\/p\u003e \u003cp\u003eApplication 3.4: Finding break-even production levels 30\u003c\/p\u003e \u003cp\u003eApplication 3.5: Finding the perfectly hedged portfolio 31\u003c\/p\u003e \u003cp\u003e3.3 Solving systems of equations that contain multiple variables 32\u003c\/p\u003e \u003cp\u003eApplication 3.6: Pricing factors 35\u003c\/p\u003e \u003cp\u003eApplication 3.7: External financing needs 35\u003c\/p\u003e \u003cp\u003e3.4 Geometric expansions 38\u003c\/p\u003e \u003cp\u003eApplication 3.8: Money multipliers 40\u003c\/p\u003e \u003cp\u003e3.5 Functions and graphs 41\u003c\/p\u003e \u003cp\u003eApplication 3.9: Utility of wealth 43\u003c\/p\u003e \u003cp\u003eExercises 44\u003c\/p\u003e \u003cp\u003eAppendix 3.A Solving systems of equations on a spreadsheet 48\u003c\/p\u003e \u003cp\u003e\u003cb\u003e4 The Time Value of Money 51\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e4.1 Introduction and future value 51\u003c\/p\u003e \u003cp\u003e4.2 Simple interest 51\u003c\/p\u003e \u003cp\u003e4.3 Compound interest 52\u003c\/p\u003e \u003cp\u003e4.4 Fractional period compounding of interest 53\u003c\/p\u003e \u003cp\u003eApplication 4.1: APY and bank account comparisons 55\u003c\/p\u003e \u003cp\u003e4.5 Continuous compounding of interest 56\u003c\/p\u003e \u003cp\u003e4.6 Annuity future values 57\u003c\/p\u003e \u003cp\u003eApplication 4.2: Planning for retirement 59\u003c\/p\u003e \u003cp\u003e4.7 Discounting and present value 60\u003c\/p\u003e \u003cp\u003e4.8 The present value of a series of cash flows 61\u003c\/p\u003e \u003cp\u003e4.9 Annuity present values 62\u003c\/p\u003e \u003cp\u003eApplication 4.3: Planning for Retirement, Part Ii 64\u003c\/p\u003e \u003cp\u003eApplication 4.4: Valuing a bond 64\u003c\/p\u003e \u003cp\u003e4.10 Amortization 65\u003c\/p\u003e \u003cp\u003eApplication 4.5: Determining the mortgage payment 66\u003c\/p\u003e \u003cp\u003e4.11 Perpetuity models 67\u003c\/p\u003e \u003cp\u003e4.12 Single-stage growth models 68\u003c\/p\u003e \u003cp\u003eApplication 4.6: Stock valuation models 70\u003c\/p\u003e \u003cp\u003e4.13 Multiple-stage growth models 72\u003c\/p\u003e \u003cp\u003eExercises 73\u003c\/p\u003e \u003cp\u003eAppendix 4.A Time value spreadsheet applications 77\u003c\/p\u003e \u003cp\u003e\u003cb\u003e5 Return, Risk, and Co-movement 79\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e5.1 Return on investment 79\u003c\/p\u003e \u003cp\u003eApplication 5.1: Fund performance 81\u003c\/p\u003e \u003cp\u003e5.2 Geometric mean return on investment 82\u003c\/p\u003e \u003cp\u003eApplication 5.2: Fund Performance, Part Ii 83\u003c\/p\u003e \u003cp\u003e5.3 Internal rate of return 84\u003c\/p\u003e \u003cp\u003e5.4 Bond yields 87\u003c\/p\u003e \u003cp\u003e5.5 An introduction to risk 88\u003c\/p\u003e \u003cp\u003e5.6 Expected return 88\u003c\/p\u003e \u003cp\u003e5.7 Variance and standard deviation 89\u003c\/p\u003e \u003cp\u003e5.8 Historical variance and standard deviation 91\u003c\/p\u003e \u003cp\u003e5.9 Covariance 93\u003c\/p\u003e \u003cp\u003e5.10 The coefficient of correlation and the coefficient of determination 94\u003c\/p\u003e \u003cp\u003eExercises 95\u003c\/p\u003e \u003cp\u003eAppendix 5.A Return and risk spreadsheet applications 99\u003c\/p\u003e \u003cp\u003e\u003cb\u003e6 Elementary Portfolio Mathematics 103\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e6.1 An introduction to portfolio analysis 103\u003c\/p\u003e \u003cp\u003e6.2 Portfolio return 103\u003c\/p\u003e \u003cp\u003e6.3 Portfolio variance 104\u003c\/p\u003e \u003cp\u003e6.4 Diversification and efficiency 106\u003c\/p\u003e \u003cp\u003e6.5 The market portfolio and beta 110\u003c\/p\u003e \u003cp\u003e6.6 Deriving the portfolio variance expression 111\u003c\/p\u003e \u003cp\u003eExercises 113\u003c\/p\u003e \u003cp\u003e\u003cb\u003e7 Elements of Matrix Mathematics 115\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e7.1 An introduction to matrices 115\u003c\/p\u003e \u003cp\u003eApplication 7.1: Portfolio mathematics 116\u003c\/p\u003e \u003cp\u003e7.2 Matrix arithmetic 117\u003c\/p\u003e \u003cp\u003eApplication 7.2: Portfolio Mathematics, Part Ii 120\u003c\/p\u003e \u003cp\u003eApplication 7.3: Put–call parity 121\u003c\/p\u003e \u003cp\u003e7.3 Inverting matrices 123\u003c\/p\u003e \u003cp\u003e7.4 Solving systems of equations 125\u003c\/p\u003e \u003cp\u003eApplication 7.4: External funding requirements 126\u003c\/p\u003e \u003cp\u003eApplication 7.5: Coupon bonds and deriving yield curves 127\u003c\/p\u003e \u003cp\u003eApplication 7.6: Arbitrage with riskless bonds 130\u003c\/p\u003e \u003cp\u003eApplication 7.7: Fixed income portfolio dedication 131\u003c\/p\u003e \u003cp\u003eApplication 7.8: Binomial option pricing 132\u003c\/p\u003e \u003cp\u003e7.5 Spanning the state space 133\u003c\/p\u003e \u003cp\u003eApplication 7.9: Using options to span the state space 136\u003c\/p\u003e \u003cp\u003eExercises 137\u003c\/p\u003e \u003cp\u003eAppendix 7.A Matrix mathematics on a spreadsheet 142\u003c\/p\u003e \u003cp\u003e\u003cb\u003e8 Differential Calculus 145\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e8.1 Functions and limits 145\u003c\/p\u003e \u003cp\u003eApplication 8.1: The natural log 146\u003c\/p\u003e \u003cp\u003e8.2 Slopes, derivatives, maxima, and minima 147\u003c\/p\u003e \u003cp\u003e8.3 Derivatives of polynomials 149\u003c\/p\u003e \u003cp\u003eApplication 8.2: Marginal utility 151\u003c\/p\u003e \u003cp\u003eApplication 8.3: Duration and immunization 153\u003c\/p\u003e \u003cp\u003eApplication 8.4: Portfolio risk and diversification 156\u003c\/p\u003e \u003cp\u003e8.4 Partial and total derivatives 157\u003c\/p\u003e \u003cp\u003e8.5 The chain rule, product rule, and quotient rule 158\u003c\/p\u003e \u003cp\u003eApplication 8.5: Plotting the Capital Market Line 159\u003c\/p\u003e \u003cp\u003e8.6 Logarithmic and exponential functions 165\u003c\/p\u003e \u003cp\u003e8.7 Taylor series expansions 166\u003c\/p\u003e \u003cp\u003eApplication 8.6: Convexity and immunization 167\u003c\/p\u003e \u003cp\u003eExercises 172\u003c\/p\u003e \u003cp\u003eAppendix 8.A Derivatives of polynomials 176\u003c\/p\u003e \u003cp\u003eAppendix 8.B A table of rules for finding derivatives 177\u003c\/p\u003e \u003cp\u003eAppendix 8.C Portfolio risk minimization on a spreadsheet 178\u003c\/p\u003e \u003cp\u003e\u003cb\u003e9 Integral Calculus 180\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e9.1 Antidifferentiation and the indefinite integral 180\u003c\/p\u003e \u003cp\u003e9.2 Riemann sums 181\u003c\/p\u003e \u003cp\u003e9.3 Definite integrals and areas 185\u003c\/p\u003e \u003cp\u003eApplication 9.1: Cumulative densities 186\u003c\/p\u003e \u003cp\u003eApplication 9.2: Expected value and variance 188\u003c\/p\u003e \u003cp\u003eApplication 9.3: Valuing continuous dividend payments 189\u003c\/p\u003e \u003cp\u003eApplication 9.4: Expected option values 191\u003c\/p\u003e \u003cp\u003e9.4 Differential equations 191\u003c\/p\u003e \u003cp\u003eApplication 9.5: Security returns in continuous time 193\u003c\/p\u003e \u003cp\u003eApplication 9.6: Annuities and growing annuities 194\u003c\/p\u003e \u003cp\u003eExercises 195\u003c\/p\u003e \u003cp\u003eAppendix 9.A Rules for finding integrals 198\u003c\/p\u003e \u003cp\u003eAppendix 9.B Riemann sums on a spreadsheet 199\u003c\/p\u003e \u003cp\u003e\u003cb\u003e10 Elements of Options Mathematics 203\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e10.1 An introduction to stock options 203\u003c\/p\u003e \u003cp\u003e10.2 Binomial option pricing: one time period 205\u003c\/p\u003e \u003cp\u003e10.3 Binomial option pricing: multiple time periods 207\u003c\/p\u003e \u003cp\u003e10.4 The Black–Scholes option pricing model 210\u003c\/p\u003e \u003cp\u003e10.5 Puts and valuation 212\u003c\/p\u003e \u003cp\u003e10.6 Black–Scholes model sensitivities 213\u003c\/p\u003e \u003cp\u003e10.7 Estimating implied volatilities 215\u003c\/p\u003e \u003cp\u003eExercises 219\u003c\/p\u003e \u003cp\u003eReferences 222\u003c\/p\u003e \u003cp\u003eAppendix A Solutions to Exercises 224\u003c\/p\u003e \u003cp\u003eAppendix B The z-Table 266\u003c\/p\u003e \u003cp\u003eAppendix C Notation 267\u003c\/p\u003e \u003cp\u003eAppendix D Glossary 270\u003c\/p\u003e \u003cp\u003eIndex 274\u003c\/p\u003e  \"This excellent text patiently guides the reader through a wide array of mathematics, ranging from elementary matrix algebra to differential and integral calculus. The quantitative methods are illustrated with a rich and captivating assortment of applications to the analysis of portfolios, derivatives, exchange, fixed income instruments, and equities. Undergraduate and MBA-level students who have read this book will feel comfortable with the mathematics in their finance courses and their professors can focus on teaching finance as it should be taught.\" \u003ci\u003eKose John, Stern School of Business, New York University\u003c\/i\u003e \u0026lt;1--end--\u0026gt;\u003cbr\u003e \u003cp\u003e\"This volume provides a comprehensive review of mathematics which will prove invaluable for students of finance. It is a reference book for the nonmathematician and a clear and concise text that will help fill the gaps in students' knowledge. Although the topic is quantitative methods, the organization, emphasis, applications, and numerous examples are all geared to the student of finance. Having Teall and Hasan on your bookshelf provides an essential safety net for students, teachers, and practitioners.\" \u003ci\u003ePaul Wachtel, Stern School of Business, New York University\u003c\/i\u003e\u003c\/p\u003e  \u003cb\u003e\u003cbr\u003e \u003c\/b\u003e \u003cp\u003e\u003cb\u003eJohn L. Teall\u003c\/b\u003e is Professor of Finance at Pace University. He has published numerous articles in scholarly journals and has served on university faculties around the world. Dr Teall is a former member of the American Stock Exchange and has done consulting work for many of the world's leading financial institutions. \u003cb\u003e\u003cbr\u003e \u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e\u003cb\u003eIftekhar Hasan\u003c\/b\u003e is Professor of Finance at the New Jersey Institute of Technology. He has published numerous articles in academic journals and has been associated with several universities and regulatory organizations in Europe. He is the co-editor of \u003ci\u003eResearch in Banking and Finance.\u003c\/i\u003e\u003c\/p\u003e  \u003ci\u003e\u003cbr\u003e \u003c\/i\u003e \u003cp\u003e\u003ci\u003eQuantitative Methods for Finance and Investments\u003c\/i\u003e ensures that readers will gain a reasonable degree of comfort and proficiency in applying elementary mathematics to financial analysis in a variety of areas. All of the methodology in this book is geared toward the development, implementation, and analysis of financial models to solve problems encountered by both finance students and practitioners. The book:\u003cbr\u003e \u003c\/p\u003e \u003cul\u003e \u003cli style=\"list-style: none\"\u003e\n\u003cbr\u003e \u003c\/li\u003e \u003cli\u003eanalyzes theoretical and practitioner-oriented models long with the mathematics required to construct them\u003c\/li\u003e \u003cli style=\"list-style: none\"\u003e\n\u003cbr\u003e \u003c\/li\u003e \u003cli\u003epresents the most essential mathematical techniques and their applications to financial analysis\u003c\/li\u003e \u003cli style=\"list-style: none\"\u003e\n\u003cbr\u003e \u003c\/li\u003e \u003cli\u003eprovides dozens of practical applications, examples, and end-of-chapter exercises with detailed solutions\u003c\/li\u003e \u003c\/ul\u003e \u003cbr\u003e \u003cul\u003e \u003cli style=\"list-style: none\"\u003e\n\u003cbr\u003e \u003c\/li\u003e \u003cli\u003edemonstrates key spreadsheet applications of the mathematical models in chapter appendices\u003c\/li\u003e \u003cli style=\"list-style: none\"\u003e\n\u003cbr\u003e \u003c\/li\u003e \u003cli\u003eemphasizes practical applications of modeling technique.\u003c\/li\u003e \u003c\/ul\u003e","brand":"Wiley-Blackwell","offers":[{"title":"Default Title","offer_id":47989896184037,"sku":"NP9780631223399","price":67.99,"currency_code":"USD","in_stock":false}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/1842\/7735\/files\/9780631223399.jpg?v=1761785831","url":"https:\/\/k12savings.com\/es\/products\/quantitative-methods-for-finance-and-investments-isbn-9780631223399","provider":"K12savings","version":"1.0","type":"link"}