Science of Inexact Mathematics. Investment Performance Measurement. Mortgages and Annuities. Computing Algorithms. Attribution. Risk Valuation Hardcover – Sep 22 2009
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Mathematician and consultant Shestopaloff thoroughly explores the world of financial mathematics in a volume that will be valuable to anyone in the field. A valuable addition to the financial mathematician's library. --Kirkus Discoveries, Nielsen Business Media
A work of impressive scholarship, Yuri Shestopaloff's "Science of Inexact Mathematics" is especially recommended for academic, governmental, and professional library collections and is a valued contribution as a graduate level mathematics curriculum supplemental resource. --Midwest Book Review (Oregon, WI USA)
Doctor of Sciences presents a comprehensive monograph on investment analysis, introducing new methods and unifying existing ones within a single conceptual framework; the book ranges from its theoretical underpinnings to the software implementation of particular algorithms, e.g. for the fast computation of the Internal Rate of Return. --ForeWord Magazine, Business & Economics
("Sums of exponential function and their new fundamental properties" and "Science of inexact mathematics"): "Both titles are very impressive academic works and the Library is very pleased to acquire these publications for inclusion to the collections" --Library of Congress, Science, Tech and Business recommender wrote about books by Yuri K. Shestopaloff the following
Useful for beginners and professionals. The author calls this manuscript a reference book. This is true, because beginners who specialize in the given area will find accurate definitions, necessary formulas… Professional practitioners will find analyses and examples on the implementation of numeric methods and computer algorithms, including a comprehensive first-hand explanation of … (SL) method from its author. --A. Sharikov (LA, USA) , five-star review on Amazon.com
From the Publisher
This book is as much for the mathematicians working in the area of financial mathematics as for designers of financial systems and financial calculators. The book received many good reviews from professionals and review journals, and has been appreciated by system designers and developers, in particular in IBM Canada. For instance, Kirkus Discovery wrote the following. Mathematician and consultant Shestopaloff thoroughly explores the world of financial mathematics in a volume that will be valuable to anyone in the field. Beginning with interest and considering annuities, mortgages, and investment and risk measurement methods, Shestopaloff uncovers the complexities of investment mathematics with clear, understandable text accompanied by numerous derivations, examples, graphs and tables. Topics studied include the internal rate of return—which the author considers in a lengthy discussion that includes its relationship with similar calculations—and nominal and effective interest rates. He also considers compounding using various computational methods and linking—a more accurate alternative to geometric linking, which is applied to financial trading. Shestopaloff discusses measurement of risk with details of the various risks and quantifying methods that are involved in investing, such as risks in interest rate, volatility, operational risk, downside risk and more. He briefly explains the probabilistic calculations involved. The introductory text includes definitions of all terms and rapidly advances through equations to allow mathematicians of different skill levels to follow the explanations. An associated software package is available, and the author briefly reviews computation methods, as well as the accuracy obtained by different methods. Shestopaloff ends with a caution that—although software may make many of these calculations invisibly and easily—it is still imperative to understand the mathematics behind the software. His explanations are thorough without excessive wordiness and the text smoothly accompanies equations and derivations. The author helpfully analyzes business consequences alongside the mathematics. The detailed index and table of contents, with paged references to subtopics, make this a very convenient reference book. Although additional editing could have corrected minor linguistic issues, readers will find the text easy to comprehend. Shestopaloff has presented many of these topics in previous peer-reviewed journal papers, but academics, students and professionals—from programmers to financial mathematicians—will find this a convenient one-volume guide, well-written and seamless. A valuable addition to the financial mathematician’s library.See all Product Description
Top Customer Reviews
Most Helpful Customer Reviews on Amazon.com (beta)
For the wider public, the book will be useful as good reading about the pitfalls of calculating internal rates of return when simple non-compound formulas are used to simplify calculation instead of more accurate compounding approaches.
On the other hand, professional practitioners will find analyses and examples on the implementation of numeric methods and computer algorithms, including a comprehensive first-hand explanation of Shestopaloff's linking (SL) method from its author.
SL allows one to combine internal rates information about different investment periods to find total rate of return. The method can be used to link sequential and non-sequential periods.
The author shows the relationship between SL and well-known geometric linking and how SL extends the geometric linking approach.
The author compares the results of all algorithms available today to prove SL effectiveness.
I found interesting the discussion of the important role of modified Dietz formula and its usage in numeric calculation.
The book describes different mathematical aspects of annuities, mortgages, the internal rate of return equation, investment attribution analysis, and risk assessments, and can probably be used for the development of new trading techniques.