Mathematical Methods for Finance: Tools for Asset and Risk Management

With the rapid growth of quantitative finance, practitioners and students alike must become more proficient in various areas of mathematics in order to excel in the demanding world of finance. Mathematical Methods for Finance, part of the Frank J. Fabozzi Series, has been created with this in mind. Designed to provide the tools and techniques needed to apply proven mathematical techniques to real-world financial markets, this book offers a wealth of insights and guidance.

Drawing on the authors' perspectives as practitioners and academics, this practical guide covers a wide range of technical topics in mathematics and finance. It opens with an informative discussion of three basic concepts—which are used in financial theory, financial modeling, and financial econometrics—found throughout the book: sets, functions, and variables. From there, it introduces and explains key mathematical techniques, ranging from differential and integral calculus, matrix algebra, and probability theory to difference and differential equations, optimization, and stochastic integrals. Along the way, you'll discover exactly how these techniques are successfully implemented in asset management and risk management.

Written with both students and practitioners in mind, Mathematical Methods for Finance is an essential resource that will show you how a better understanding of specific mathematical techniques can enhance your financial decision-making.