I never understood why I had to study mathematics to study finance. I'm glad to answer your question.
Finance is a big industry.
Mathematics in the financial industry is deeply applied to some unconventional financial product pricing, such as the design, sale and purchase of financial derivatives, and some complex quantitative investment analysis. If you are good at math, it is more appropriate to do these two pieces.
In addition to these two parts, the financial industry still has a lot of room for development, and other parts don't need much mathematics. For example, doing investment banking is basically using arithmetic four operations (! ), making regular investments may be a bit complicated, but it is estimated that calculus is not needed.
In fact, in the financial industry, having clear logical thinking may be much more important than having studied mathematics.
Doing finance is really sensitive to mathematics, but it should be discussed in different situations.
1. The contents of accounting and corporate finance do not contain too many complicated mathematical operations. More important is the understanding of accounting rules and ratios. If LZ does equity research, it doesn't have too high requirements for mathematics.
2. Ordinary financial products: pricing of stocks, stock indexes, bonds, etc. It is more complicated than 1, but it does not require advanced mathematical operations. What is more important is the understanding of 1 and the understanding of the market.
3. Financial derivatives: futures, swaps, options, CDS, etc. The pricing of some complex financial products really needs the participation of mathematicians, and advanced mathematical methods and statistical theories will be used. At this time, it is difficult to understand the pricing of these products if LZ's mathematical knowledge stays at the level of simple calculus and line generation.
I hope my answer can help you. Hope to adopt, thank you.
Want to do math in the financial industry? Not necessarily, it depends on the specific aspects you are engaged in. If it is high-level and financial product pricing, financial instrument product development should be good at mathematics. At present, the financial requirements of economic schools in colleges and universities should be that their mathematical ability is not high. I hope it helps.
Why must we understand that mathematics is deeply applied in the financial industry? It should be in the pricing of some unconventional financial products, such as the design, sale and purchase of financial derivatives, and some complicated quantitative investment analysis. If you are good at math, it is more appropriate to do these two pieces.
Is it necessary for finance to learn mathematics? It is still necessary, but it will be better than engineering.
Why is it easier to learn advanced financial mathematics? Basically go to calculus.
The most basic thing is that you can make a change curve according to the existing data.
After fitting the curve, we can basically infer the future development trend.
Why financial mathematics is better? Because the financial industry is all about numbers, and numbers are most often seen every day. Do you think this kind of math can be good?
Honey, it's adoption.
Do you need math to learn finance? I want to study finance, but I'm not good at math. There are many connections between finance and mathematics, but as long as you want to learn, you can be sure.
Why do I study finance and review Marx at night? I suddenly remembered a cross talk I heard in high school, in which there was a description of Marxist philosophy, saying, "The world is material, material is moving, movement is regular, and laws can be mastered." I didn't understand it at that time, but now it seems that the first two sentences are about the world outlook and the last two sentences are about methodology. Four sentences are pushed forward from behind, and the source is material. Philosophy is the source of all knowledge, that is, the development of all knowledge can be pushed back from the material. I get excited when I think about it. I was going to do math problems, so I immediately put the whole book again and began to sort it out all the way. If you plan to engage in finance in the future, let's start with this idea. How do we connect with finance through a set of philosophical methods? After a little thought, there was an argument. The development of human society begins with the first material production, then forms social relations and social consciousness, and gradually develops into a complete society. This is a vein of the development of human society. Back to the first generation of material products, with the initial material exchange, money continued to develop, and now it has become the financing of funds, that is, finance. The economic base determines the superstructure. Every major event in the history of the world can see the surge of huge capital, which is driven by interests. That's what currency wars are all about. It can be concluded that the occurrence of events can be measured and quantitatively analyzed by capital to a certain extent. From the world war to the workplace struggle, it can be analyzed from the interest-driven in the form of money. Continue to return to the source of the world-matter. A slight change in the first four sentences can clarify the context of finance. The world is material, material can be quantified by money, money is circulating, circulation is regular, and laws can be mastered. It can be seen that a thorough study of the law of money flow can explain the law of world operation to some extent. Brother Feng described a character called Wan Guizang in the martial arts novel The Sea. It is from advocating Taoism that this man realized the Heaven and the peerless martial arts-Liu Zhou and Liu Xugong. He wrote in his novel that Taoism is close to heaven, that is, it is closer to the original operating law of the world. This discussion is put aside for the time being and can be developed slowly later. Tell me more about myself. Since junior high school, I have been curious about the laws of the world. I unconsciously thought that I bought ten lollipops with this dollar, and the shopkeeper got a dollar. The shopkeeper bought goods for the supplier, and so on. Where did you end up? At that time, I was still young, and I fainted after a little walk. High school began to read some financial news magazines and so on, and the channels for watching TV changed from eight or three sets of Hunan Satellite TV, Zhejiang Satellite TV and CCTV to one, two or ten sets of CCTV. During college, almost all the spare time spent outside the dormitory was singing, and what I spent in the dormitory was watching news and financial reports. Everything is conscious and subconscious, not deliberate. When I was in class in my junior year, I took my mobile phone to browse the economic section of Tianya Forum. Someone posted a post about his hard work in wall street investment bank, which immediately caused a strong curse. I have a computer in front of me, with colorful numbers floating on it, analyzing market trends, looking for profit opportunities for funds, hovering between big and small risks, and having the same profit opportunities while facing tens of millions of risks in an instant ... Isn't this a very exciting thing? This feeling is just what I want. Almost at this moment, I knew my future development direction. After a little weighing, I came up with the idea of postgraduate entrance examination. Postgraduate entrance examination is only a means, not an end, but this way can reach your destination faster, that's all. Someone asked me what to do if I failed the exam. Just like climbing a mountain. There is a shortcut ahead, but it is blocked by a big stone. If I can't overcome it, I can try again. It's really impossible to take another road around it, but the end point is the same. When this process is regarded as the goal for ten or twenty years, many things become less eager to achieve, such as salary, position, education and other intangible things. In this way, I chose to study finance. With a purpose, when faced with many choices and temptations, it becomes easy, clear and simple, that's all. I was supposed to do a math problem, but I spent my time as soon as my thoughts diverged. But it's not a bad thing to record your thoughts in time. After a while, the understanding at this time will not be as profound as it is at this time. Only by recording the perceptual knowledge at this moment, accumulating more and connecting it with logic can we rise to rational knowledge. This shows how interesting philosophy is.