Investment Mathematics is divided into three parts. Part I looks at the fundamental analysis of investments from a mathematical viewpoint, relying heavily on compound interest techniques which are developed in the first chapter. The material is presented in such a way that those without formal training in mathematics will be able to follow the text without difficulty.
Part II provides the necessary statistical background for investment specialists. Like Part I, the approach assumes little formal mathematical training. Finally, the book deals with a number of specialist topics which are applications of the material covered earlier, including modern portfolio theory and asset pricing, market indices, portfolio performance measurement, stochastic investment models and the theoretical pricing of options.
Investment Mathematics is an accessible text which will provide readers with a sound analytical framework within which the valuation of investments and investment in a wider context may be studied.
PART I: SECURITY ANALYSIS.
Equities and Real Estate.
Foreign Currency Investments.
PART II: STATISTICS FOR INVESTMENT.
Describing Investment Data.
Modelling Investment Returns.
Estimating Parameters and Hypothesis Testing.
Measuring and Testing Comovements in Returns.
PART III: APPLICATIONS.
Modern Portfolio Theory and Asset Pricing.
Portfolio Performance Measurement.
Option Pricing Models.
Stochastic Investment Models.
Compound Interest Tables.
Student′s t Distribution: Critical Points.
Areas in the Right–hand Tail of the Normal Distribution.