Finance has become increasingly more quantitative, drawing on techniques in probability and statistics that many finance practitioners have not had exposure to before. In order to keep up, you need a firm understanding of this discipline.
Probability and Statistics for Finance addresses this issue by showing you how to apply quantitative methods to portfolios, and in all matter of your practices, in a clear, concise manner. Informative and accessible, this guide starts off with the basics and builds to an intermediate level of mastery.
• Outlines an array of topics in probability and statistics and how to apply them in the world of finance
• Includes detailed discussions of descriptive statistics, basic probability theory, inductive statistics, and multivariate analysis
• Offers real-world illustrations of the issues addressed throughout the text
The authors cover a wide range of topics in this book, which can be used by all finance professionals as well as students aspiring to enter the field of finance.
About the Authors.
CHAPTER 1 Introduction.
Probability Versus Statistics.
Overview of the Book.
PART ONE Descriptive Statistics.
CHAPTER 2 Basic Data Analysis.
Empirical Cumulative Frequency Distribution.
Cumulative Frequency Distributions.
Concepts Explained in this Chapter (In Order of Presentation).
CHAPTER 3 Measures of Location and Spread.
Parameters versus Statistics.
Center and Location.
Measures of the Lin... MORE
SVETLOZAR T. RACHEV, PhD, DSC, is Chair Professor at the University of Karlsruhe in the School of Economics and Business Engineering, and Professor Emeritus at the University of California, Santa Barbara, in the Department of Statistics and Applied Probability. He was cofounder of Bravo Risk Management Group, acquired by FinAnalytica, where he currently serves as Chief Scientist.
MARKUS HÖCHSTÖTTER, PhD, is an Assistant Professor in the Department of Econometrics and Statistics, University of Karlsruhe.
FRANK J. FABOZZI, PhD, CFA, CPA, is Professor in the Practice of Finance and Becton Fellow at the Yale School of Management and Editor of the Journal of Portfolio Management. He is an Affiliated Professor at the University of Karlsruhe's Institute of Statistics, Econometrics and Mathematical Finance, and is on the Advisory Council for the Department of Operations Research and Financial Engineering at Princeton University.
SERGIO M. FOCARDI, PhD, is a Professor of Finance at EDHEC Business School and founding partner of the Paris-based consulting firm Intertek Group plc.