We value your privacy

We use cookies to enhance your browsing experience, serve personalized ads or content, and analyze our traffic. By clicking "Accept All", you consent to our use of cookies.

Customize Consent Preferences

We use cookies to help you navigate efficiently and perform certain functions. You will find detailed information about all cookies under each consent category below.

The cookies that are categorized as "Necessary" are stored on your browser as they are essential for enabling the basic functionalities of the site. ... 

Always Active

Necessary cookies are required to enable the basic features of this site, such as providing secure log-in or adjusting your consent preferences. These cookies do not store any personally identifiable data.

No cookies to display.

Functional cookies help perform certain functionalities like sharing the content of the website on social media platforms, collecting feedback, and other third-party features.

No cookies to display.

Analytical cookies are used to understand how visitors interact with the website. These cookies help provide information on metrics such as the number of visitors, bounce rate, traffic source, etc.

No cookies to display.

Performance cookies are used to understand and analyze the key performance indexes of the website which helps in delivering a better user experience for the visitors.

No cookies to display.

Advertisement cookies are used to provide visitors with customized advertisements based on the pages you visited previously and to analyze the effectiveness of the ad campaigns.

No cookies to display.

Archives

Categories

1. Introduction, Financial Terms and Concepts

1. Introduction, Financial Terms and Concepts

Total
0
Shares
Share 0
Tweet 0
Pin it 0



MIT 18.S096 Topics in Mathematics with Applications in Finance, Fall 2013 View the complete course: …

source

Total
0
Shares
Share 0
Tweet 0
Pin it 0
Related Topics

You May Also Like
21 comments

  6. I've been thinking about this whole investment think. Somehow, I think the equations are wrong, Here's what I think. You have 1$. You go and buy bread. 1$ = 1 bread. You have 1$. You go and invest. After a day, if everything goes really well, you get 2 $. But 1$ != 2$. So, during that time, something happened to the dollar. What exactly happened? Well, the value of the stocks fluctuated. Because of the fluctuation, the stocks you invested in gained more value. So, the value of the $ you invested represents a function that describes the fluctuation. But since it represents something different than the $ you used to buy bread, it's not correct to use the same sign. You can't use the same notation for something that represents a fluctuation and also something that represent value at a given moment. So, in order for this to make sense, you need to consider that the $ you use to invest is actually d$/dt. A derivative. In the same way acceleration is the derivative of speed.

    Reply

Leave a Reply to @IrfanShaikhVlogs-cy5wp Cancel reply

Your email address will not be published. Required fields are marked *