Understanding Mathematical Concepts in Finance and Economics

Pursuing the understanding of finance and economics has been exploding in the last 10 or so years. The emphasis has been on how to make financial decisions and what kind of methodologies one has to use in optimizing them. Of course, when one talks about optimizing, one refers to allocation of resources as well as understanding the risk of that allocation. To be sure, understanding finance and economics for appropriate and applicable decision making in any organization we must also understand mathematics as well as statistics. There are two options here. One is to focus on theory with theorems and proofs, and two to provide an application of these theorems to the real world situations. In this book we have taken the approach of identifying some theory with minimum amount of proofs. However we have selected applications of the theory using some old, reliable approaches as well as new and innovative methodologies to discuss as viable decision making ways for optimizing "the" decision.