Financial Analysis and Applications

Author: Li Chulin, Yang Ming, Yi Jiang
Publisher:
Publish Date: 2002-09-01
Features: This book is compiled from the lecture notes used by the authors over the years in teaching financial economics to undergraduate and graduate students at Huazhong University of Science and Technology, Wuhan University, Shantou University, Nanjing University of Aeronautics and Astronautics, and the Institute of Applied Mathematics, Chinese Academy of Sciences. Its purpose is to introduce the fundamental knowledge of modern financial economics to undergraduate and graduate students in fields such as finance, economics, management, and mathematics. The main content of the book includes portfolio selection theory, the capital asset pricing model, the pricing theory of futures and options, as well as corporate capital structure and capital cost theory. Through studying this book, readers will lay a solid foundation for further in-depth learning, research, and application of modern financial theory. A major feature of financial analysis is the extensive use of mathematics, but it is not a math subject in itself. Although the mathematics applied in financial theory literature has become highly advanced in the past two decades, this book uses only college-level calculus and a bit of probability and statistics knowledge to cater to a broad readership. For every introduced concept, the book starts from the basics and emphasizes its practical meaning. The proofs of every theorem (except for a few exceptions) and the calculations of examples are derived step by step in detail, ensuring close coordination between economics and mathematics, as well as a balance between form and content. As long as readers have a basic understanding of elementary calculus, they can self-study this book.