maths, physics, universe Flashcards
(9 cards)
why is maths used in financial markets ?
to model risk, price assets, manage portfolio, market dynamics
why is probability important ?
understanding risk, and forecasting
what are the 7 maths topics used in the financial markets ?
Algebra, probability, calculus, linear algebra, stochastic calculus, time series analysis, numerical methods
why is physics important in financial markets ?
to help us understand and model market behavior
what does physics help us with ?
understand market randomness
how does the universe correlate to financial markets ?
both evolve unpredictably but show emerging order
how do galaxies and stars link to markets ?
they both show geometric patterns
when the universe evolves over time and and space with a “direction” - how does this link to markets
through trends, booms, crashes
how is the universe linked with financial markets - 3 things
due to randomness, chaos, complexity