Financial Analysis and Applications (SCUSS)

Author: Li Chulin et al.
Publisher:
Publish Date: 2002-09-19
Features: This book is compiled from the lecture notes used by the author 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 students and researchers 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 can lay a solid foundation for further in-depth learning, research, and application of modern financial theories. A major feature of financial analysis is the extensive use of mathematics, but it is not a branch of mathematics 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 to cater to a broad readership. For every introduced concept, the book starts from the basics and emphasizes its practical meaning. The proofs of each theorem (except for a few exceptions) and the calculations of examples are presented 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 calculus, they can self-study this book.