I'm trying to compare the compounded losses due to inflation to non-compounded profits. E.g. if inflation makes me lose 3% of an investment each year, what % would I need to profit each year in order to exactly keep up? This is tricky because the profit is not compounded the way inflation is. I'm not looking for an answer to this specific question, but rather, looking for a tool or method to do this kind of math. [more inside]
Need formula for APR with long/short odd days. [more inside]
Any recommendations for a good graduate level text book for an introduction to mathematical finance course? [more inside]
I'm a pure mathematician with a Ph.D. and I'm currently a visiting professor at a large state university. However, I'm looking to switch gears and get into the quantitative finance field. The problem is that I don't know anything at all about finance. I know that there are companies such as D. E. Shaw that hire mathematicians that don't have financial experience; what other companies should I look at? Is there any general advice you'd give someone in my position? Also, I have my Ph.D. from a well-regarded state school, but I'm not an Ivy-leaguer; does that put me at a disadvantage?
Math nerds, help! I need to figure out what's the better option for acquiring a car using borrowed money. [more inside]
1.35 APY vs 1.25 APY + 10% quarterly bonus on interest earned. Help me understand which is better. [more inside]
Not Homework Filter! Paypal Filter: Paypal charges me 2.9% plus $0.30 for every transaction. Someone needs to pay me X. What is the formula to determine how much they need to send with paypal so I get X and not X - (X * 0.029) - 0.30? [more inside]
As a former scientist, help me gain some faith in economics. What were the great successes of economics as a tool for making better decisions in the last 100 years? [more inside]
I have four mutual funds in my IRA account - a Total Market index fund, a Small-cap index fund, an International stock index fund, and a Bond index fund, and I'm trying to figure out how to allocate my assets between them. I've read a little bit about "Modern Portfolio Theory" and the "Efficient Frontier", but I'm struggling to understand some of the math. So, is there a simple way I can test whether a particular allocation is on the efficient frontier? Or, see all the possible allocations on the efficient frontier and choose between them? How do I figure this out? Ideally, I'd love to see a simple enough formula that, given the mean and standard deviation (and maybe correlation matrix), of my four funds, would tell me what allocation is on the efficient frontier. Or, some type of online tool, or an Excel spreadsheet or something. [more inside]
Is it possible to estimate the standard deviation of an investment's return after "y" years, if you know the investment's mean annual return and standard deviation? [more inside]
Question about semi-sophisticated statistics and financial modeling - lets say you have N asset classes - each class has a mean rate of return and a standard deviation of returns. Also, assume you hold a portfolio comprised entirely of these N asset-classes, in certain proportions. How do you determine the probability that the portfolio might produce the a certain rate of return over P periods?
Does anyone here do any programming for financial modeling? (more inside) [more inside]