Quantitative Finance: Its Development, Mathematical Foundations, and Current Scope

The author begins with introductory chapters on mathematical analysis and probability theory, which provide the needed tools for modeling portfolio choice and pricing in discrete time. Next, a review of the basic arithmetic of compounding as well as the relationships that exist among bond prices and spot and forward interest rates is presented.? Additional topics covered include:
    * Dividend discount models
    * Markowitz mean-variance theory
    * The Capital Asset Pricing Model
    * Static?portfolio theory based on the expected-utility paradigm
    * Familiar probability models for marginal distributions of returns and the dynamic behavior of security prices