Mathematics of Growth

Michael Dempsey

Chapter 6 in Stock Markets, Investments and Corporate Behavior:A Conceptual Framework of Understanding, 2015, pp 73-121 from World Scientific Publishing Co. Pte. Ltd.

Abstract: The following sections are included:IntroductionThe Important Power LawsDiscrete Returns, Compounding, and DiscountingContinuously Compounding Growth RatesApplication of LogarithmsThe Normal DistributionThe Normal Distribution and Asset PricingRates of Change between Variables and their Implied Direct Relation: The CalculusThe Calculus of the Normal Probability FunctionPortfolio Formation: Expected Returns, Standard Deviations (Variance), Covariance, Beta, and Correlation CoefficientsExpected returnVariance and standard deviationCovarianceVariance of portfolio returnsAn example with normal distribution tablesBetaCorrelationThe Central Limit TheoremThe Binomial Representation of Normally Distributed Exponential Growth RatesTime to Reflect: What Have We Learned?

Keywords: Stock Markets; Investments; Corporate Finance; Mathematical Finance (search for similar items in EconPapers)
Date: 2015
References: Add references at CitEc
Citations:

Downloads: (external link)
https://www.worldscientific.com/doi/pdf/10.1142/9781783267002_0006 (application/pdf)
https://www.worldscientific.com/doi/abs/10.1142/9781783267002_0006 (text/html)
Ebook Access is available upon purchase.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:wsi:wschap:9781783267002_0006

Ordering information: This item can be ordered from

Access Statistics for this chapter

More chapters in World Scientific Book Chapters from World Scientific Publishing Co. Pte. Ltd.
Bibliographic data for series maintained by Tai Tone Lim ().