Quantitative Methods in Finance

by Keith Parramore and Terry J. Watsham

This text explains the mathematical and statistical applications relevant to modern financial instruments and risk management techniques. It progresses at a comfortable pace for those with less mathematical expertise yet reaches a high level of analysis for the more experienced.

• Format: Paperback
• Language: English
• ISBN: 0412608200
• ISBN13: 9780412608209
• Release Date: January 1996
• Publisher: International Thomson Publishing Services
• Length: 500 Pages
• Weight: 1.50 lbs.
• Dimensions: 0.7" x 7.4" x 9.7"
• Age Range: 18 years and up
• Grade Range: Postsecondary

Customer Reviews

Much better than Neftci or Wilmott at explaining basics

This book actually can be read by non-math majors.Watsham really makes the effort needed to makethe book "readable" to non-quants.Unlike Neftci and Wilmott, who jump to more advanced materialwithout really explaining most of the details,Watsham explains all the needed details.However, Watsham's book covers much fewer topicsthan Neftci's or Wilmott's (Quant finance) book covers.I hope Mr. Watsham next edition includes more of the topics that are found in Netfci's book.

To build a strong foundation

It is one book that covers a wide range of basic to intermediate level concepts that are essential for any quantitative finance practitioner, financial analyst, portfolio manager and derivative traders. The book assumes some very basic mathematical background. Throughout the book the authors seem to have deliberately relied on basic algebra rather than complex integration and differentiation -- except in some relatively advanced topics that are covered in final few chapters of the book. I highly recommend reading this book to build a solid background of mathematics that is now commonplace in finance.

Quant for 'non-quants'

This book targets readers who have little or no familiarity with statistics and calculus (or who, like me, has forgotten much of these two disciplines. The authors do a great job of explaning why we use the methods they explain. Clear examples are provided. Complex subjects are built up from simpler principles. I highly recommend this bood to students seeking a thorough grounding in the quantitative methods underlying the pricing of assets and derivatives, portfolio management, risk management, etc.

Quantitative Methods APPLIED to REAL problems

Basically agree with the other reader. This is the book for practitioners and students alike. To me, it was very refreshing reading a book which is "down to earth" but still captures the "essence" of quantitative finance. Where else can you find Taylors series applied to estimate bond price changes step by step? Some stuff is pretty basic, but the authors manage to cover advance quite rapidly (e.g. cointegration, GARCH, optimization). Nefti's book on derivatives is very difficult for non math guys (if not impossible), but Wilmott's isn't much easier either.