Stochastic Processes and Monte Carlo with R

The use of probability and statistics is ubiquitous in quantitative finance. All of the observable prices, volumes, order arrival rates, etc, are due to supply and demand imbalances. However, keeping track of all the supply and demand imbalances becomes cumbersome as the number of variables increases. Statistical tools are vital in explaining and modeling these effects. Stochastic processes and Monte Carlo analysis are some of the tools that are used in the fields of finance, economics and marketing.

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Posted by  Prabhani Jayasinghe