Quantitative finance: Difference between revisions
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As with all techniques, quantitative finance can subject to problems of spurious accuracy and "garbage in, garbage out". | As with all techniques, quantitative finance can be subject to problems of spurious accuracy and "garbage in, garbage out". | ||
Particularly when users don't fully understand the maths, don't challenge the underlying assumptions, or both. | Particularly when users don't fully understand the maths, don't challenge the underlying assumptions, or both. | ||
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* [[Option]] | * [[Option]] | ||
* [[Portfolio]] | * [[Portfolio]] | ||
* [[Qualitative techniques]] | |||
* [[Quantitative fallacy]] | |||
* [[Quantitative techniques]] | * [[Quantitative techniques]] | ||
* [[Risk management]] | * [[Risk management]] | ||
Latest revision as of 12:48, 12 April 2023
Finance - quantitative techniques.
Defined broadly, quantitative finance is the branch of finance that uses numerical ("quantitative") techniques.
More narrowly defined, quantitative finance means using advanced mathematical modelling, and larger sets of data, for financial decision making.
Applications include options valuation and advanced risk management.
As with all techniques, quantitative finance can be subject to problems of spurious accuracy and "garbage in, garbage out".
Particularly when users don't fully understand the maths, don't challenge the underlying assumptions, or both.
