As in earlier editions, the material is set in a historical context to more powerfully illustrate the ideas and concepts.Includes fully updated and revised material from the successful second edition Recent changes in emphasis, principle and methodology are carefully explained and evaluated Discusses all recent major developments Particular attention is given to the nature and importance of basic concepts (probability, utility, likelihood etc) Includes extensive references and bibliography
Written by a well-known and respected author, the essence of this successful book remains unchanged providing the reader with a thorough explanation of the many approaches to inference and decision making.
The book provides easy and quick access to the field of theoretical finance by linking the study of applied probability and its applications to finance theory all in one place. The coverage is carefully selected to include most of the key ideas in finance in the last 50 years.
The book will also serve as a handy guide for applied mathematicians and probabilists to easily access the important topics in finance theory and economics. In addition, it will also be a handy book for financial economists to learn some of the more mathematical and rigorous techniques so their understanding of theory is more rigorous. It is a must read for advanced undergraduate and graduate students who wish to work in the quantitative finance area.
The contributors are leading scientists in domains such as statistics, mathematics, and theoretical computer science, and the book will be of interest to researchers and graduate students in these domains.