The Math Behind Wall Street: How the Market Works and How to Make It Work for You
By admin • Dec 6th, 2008 • Category: Finance •
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The Math Behind Wall Street: How the Market Works and How to Make It Work for You
by Nicholas Teebagy
The Math Behind Wall Street: How the Market Works and How to Make It Work for You
By Nicholas Teebagy
Publisher: Basic Books
Number Of Pages: 128
Publication Date: 2000-02-29
ISBN-10 / ASIN: 1568581602
ISBN-13 / EAN: 9781568581606
Binding: Paperback
In The Math Behind Wall Street, Nick Teebagy speaks intelligently to investors at all levels of experience. A mathematician, Teebagy begins by exploring key terms ranging from statistics and probability to covariance and correlation, and then connects them to the way the stock market actually works. The book builds on each lesson to reinforce general knowledge and prepare the reader for more challenging ideas. As investors increasingly understand how to deal with concepts such as uncertainty and standard deviations, the numbers become less intimidating and Wall Street loses its menace. This book can help investors and advisors make smart decisions and minimize their risk.
Amazon.com Review:
By outlining and explaining the enigmatic terms and concepts used to track and ultimately determine stock movements, The Math Behind Wall Street: How the Market Works and How to Make it Work for You, by Bentley College mathematics professor Nicholas Teebagy, is designed to provide average investors with financial tools that usually are the province of professionals. Intimidated by the likes of ARCH/GARCH models and neural networks? Don’t be. Teebagy begins by describing the basics of probability and risk in order to clarify the way that uncertain future events are taken into account to form a well-reasoned investment analysis. In clear language, and with the welcome assistance of numerous charts and graphs, he then goes on to specify how all this can be used to calculate the potential performance of an entire portfolio. Lastly, he offers an introduction to advanced topics such as the aforementioned ARCH/GARCH models (for tracking periods of continued volatility) and neural networks (which attempt to imitate the way human brains process information). While not for the fiscally faint of heart, this short but information-packed volume will assist serious investors as they try to keep ahead of evolving market trends. –Howard Rothman
Summary: Lacking investment insights
Rating: 1
This book will disappoint if you are looking for investment insights using mathematical analysis. If you just want to stimulate the math side of your brain then, fine, buy it.
Summary: Great reference
Rating: 5
The value of this book is not as an instructional book (yes, it is too short for that. The bibliography of this book provides excellent direction for further instruction), but as a reference. It is a pretty comprehensive reference for basic finance math. The only thing missing is risk management formulas (VaR, etc). I used this is a constant reference while doing my MBA and found it made my life much easier! Highly recommended.
Summary: A good reference for investment formulas
Rating: 5
This is a great book.
I use it as a reference for putting formulas into my investment spreadsheets.
It would be a good read, if you can reading a mathematics book enjoyable, in order to become familiar with the concepts behind probability, risk, and measuring return on an investment or portfolio. As already stated, I just use it as reference material - but I find myself going to it again and again.
Summary: The Best Introduction
Rating: 5
I am currently on a Financial Markets course that is at Masters Level. I bought this book because of its small size and the basic details it covers. I have many other bigger books that go into more detail about stock pricing. However, this book really does explain the basics better than any other I have read. It explains in very simple and statistical terms areas such as the Simple Index Model (SIM), CAPM , Measuring performance of a portfolio, and Modern Portfolio theory. It also touches the surface of advanced moddelling in ARCH/GARCH.
But what really sets it apart is that it explains terms not from a purely academic point of view but a much more informative way by looking at how investors should and would approach a problem. If you have some understanding of statistics such as mean and variance (although both are explained in the book) then I would recommend this book to anyone who is thinking about embarking on an investment course of some kind. It is a definite read for any beginner and will make the course easier becasue it explains the fundamentals very well.
Summary: Savvy, informative, invaluable reading.
Rating: 5
Savvy investors in the stock market need knowledge of the math behind the market, and The Math Behind Wall Street provides it: a slim book masks a wealth of information covering statistics, probability, and other practical applications of business math concepts. From risk factors to annual rates of return, The Math Behind Wall Street will prove invaluable.
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