Mathematics and Statistics for Financial Risk Management, 2nd Edition

Mathematics and Statistics for Financial Risk Management, 2nd Edition is a practical guide to modern financial risk management for both practitioners and academics.

Now in its second edition with more topics, more sample problems and more real world examples, this popular guide to financial risk management introduces readers to practical quantitative techniques for analyzing and managing financial risk.

In a concise and easy-to-read style, each chapter introduces a different topic in mathematics or statistics. As different techniques are introduced, sample problems and application sections demonstrate how these techniques can be applied to actual risk management problems. Exercises at the end of each chapter and the accompanying solutions at the end of the book allow readers to practice the techniques they are learning and monitor their progress. A companion Web site includes interactive Excel spreadsheet examples and templates.

Mathematics and Statistics for Financial Risk Management is an indispensable reference for today’s financial risk professional.

Table of Contents

Chapter 1 Some Basic Math
Chapter 2 Probabilities
Chapter 3 Basic Statistics
Chapter 4 Distributions
Chapter 5 Multivariate Distributions and Copulas
Chapter 6 Bayesian Analysis
Chapter 7 Hypothesis Testing and Confidence Intervals
Chapter 8 Matrix Algebra
Chapter 9 Vector Spaces
Chapter 10 Linear Regression Analysis
Chapter 11 Time Series Models
Chapter 12 Decay Factors
Appendix A Binary Numbers
Appendix B Taylor Expansions
Appendix C Vector Spaces
Appendix D Greek Alphabet
Appendix E Common Abbreviations
Appendix F Copulas