UID:
edocfu_9959327579902883
Format:
1 online resource (783 pages)
ISBN:
9781118594773
,
1118594770
,
9781119450290
,
1119450292
,
1118014774
,
9781118014776
,
9781118594667
,
1118594665
Content:
This comprehensive yet accessible book introduces students to financial markets and delves into more advanced material at a steady pace while providing motivating examples, poignant remarks, counterexamples, ideological clashes, and intuitive traps throughout.
Note:
""3.6 A digression: Elementary investment analysis""
,
An Introduction to Financial Markets: A Quantitative Approach -- Contents -- Preface -- About the Companion Website -- Part I Overview -- 1 Financial Markets: Functions, Institutions, and Traded Assets -- 1.1 What is the purpose of finance? -- 1.2 Traded assets -- 1.2.1 The balance sheet -- 1.2.2 Assets vs. securities -- 1.2.3 Equity -- 1.2.4 Fixed income -- 1.2.5 FOREX markets -- 1.2.6 Derivatives -- 1.3 Market participants and their roles -- 1.3.1 Commercial vs. investment banks -- 1.3.2 Investment funds and insurance companies
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1.3.3 Dealers and brokers1.3.4 Hedgers, speculators, and arbitrageurs -- 1.4 Market structure and trading strategies -- 1.4.1 Primary and secondary markets -- 1.4.2 Over-the-counter vs. exchange-traded derivatives -- 1.4.3 Auction mechanisms and the limit order book -- 1.4.4 Buying on margin and leverage -- 1.4.5 Short-selling -- 1.5 Market indexes -- Problems -- Further reading -- Bibliography -- 2 Basic Problems in Quantitative Finance -- 2.1 Portfolio optimization -- 2.1.1 Static portfolio optimization: Meanâ#x80;#x93;variance efficiency
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2.1.2 Dynamic decision-making under uncertainty: A stylized consumptionâ#x80;#x93;saving model2.2 Risk measurement and management -- 2.2.1 Sensitivity of asset prices to underlying risk factors -- 2.2.2 Risk measures in a non-normal world: Value-atrisk -- 2.2.3 Riskmanagement: Introductory hedging examples -- 2.2.4 Financial vs. nonfinancial risk factors -- 2.3 The no-arbitrage principle in asset pricing -- 2.3.1 Why do we need asset pricing models? -- 2.3.2 Arbitrage strategies -- 2.3.3 Pricing by no-arbitrage -- 2.3.4 Option pricing in a binomial model
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2.3.5 The limitations of the no-arbitrage principle2.4 The mathematics of arbitrage -- 2.4.1 Linearity of the pricing functional and law of one price -- 2.4.2 Dominant strategies -- 2.4.3 No-arbitrage principle and risk-neutral measures -- S2.1 Multiobjective optimization -- S2.2 Summary of LP duality -- Problems -- Further reading -- Bibliography -- Part II Fixed-income assets -- 3 Elementary Theory of Interest Rates -- 3.1 The time value of money: Shifting money forward in time -- 3.1.1 Simple vs. compounded rates
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3.1.2 Quoted vs. effective rates: Compounding frequencies3.2 The time value of money: Shifting money backward in time -- 3.2.1 Discount factors and pricing a zero-coupon bond -- 3.2.2 Discount factors vs. interest rates -- 3.3 Nominal vs. real interest rates -- 3.4 The term structure of interest rates -- 3.5 Elementary bond pricing -- 3.5.1 Pricing coupon-bearing bonds -- 3.5.2 Frombond prices to term structures, and vice versa -- 3.5.3 What is a risk-free rate, anyway? -- 3.5.4 Yield-to-maturity -- 3.5.5 Interest rate risk -- 3.5.6 Pricing floating rate bonds
Additional Edition:
Print version: Brandimarte, Paolo. An Introduction to Financial Markets : A Quantitative Approach. Newark : John Wiley & Sons, Incorporated, ©2017 ISBN 9781118014776
Language:
English
Keywords:
Electronic books.
URL:
https://onlinelibrary.wiley.com/doi/book/10.1002/9781119450290
