Summary |
The determination of the values of stocks, bonds, options, futures and derivatives is ascertained through the process of asset pricing. Due to advances in financial theory and econometrics asset pricing has developed dramatically in the last few years. This book covers new advances in asset pricing by concentrating on the most widely used and important modelling technique, Linear Factor Modelling. Linear Factor Models in Finance is authored by both academics and practitioners to ensure comprehensive coverage of the latest methods in this area.
As a minimum the reader of this book must have a working knowledge of basic calculus, simple optimization and elementary statistics. In particular the reader must be comfortable with algebraic manipulation of means and variances of linear combinations of random variables. Some topics presented may require a greater mathematical sophistication, however, a survey chapter should help the reader to master this valuable material.
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