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Quantitative Finance

Quantitative finance is a branch of investment management that employs mathematical and statistical methods to analyze investment opportunities across a range of asset classes. Practitioners in quantitative finance (“quants”) work in equities, fixed income and structured products, commodities, foreign exchange, and derivatives.

Below, please find some of the research I find interesting in Quantitative Finance.

Markov Analysis

Markov analysis is a method used to forecast the value of a variable whose predicted value is influenced only by its current state, and not by any prior activity. In essence, it predicts a random variable based solely on the current circumstances surrounding the variable.

In the field of finance, Markov chains can model investment return and risk for various types of investments. Markov chains can model the probabilities of claims for insurance, such as life insurance and disability insurance, and for pensions and annuities.

Bayesian Inference

Bayes' Theorem, named after 18th-century British mathematician Thomas Bayes, is a mathematical formula for determining conditional probability. Conditional probability is the likelihood of an outcome occurring, based on a previous outcome having occurred in similar circumstances. Bayes' theorem provides a way to revise existing predictions or theories (update probabilities) given new or additional evidence.

Other Papers in Quantitative Finance

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