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Probability Applied

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Managing Uncertainty, Mitigating Risk

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Abstract

Probability, statistics and stochastic differential equations have had considerable success in finance and economics. We have discussed the evolution of the concept of risk in modern finance in Chapter 2. Here we will touch on many of the major modelling-based developments in modern risk and finance and their statistical underpinnings. We present a broad overview of probabilistic methods in use in banking and finance today and how probabilistic thinking has moved the sector forward significantly.

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Authors
  1. Nick B. Firoozye
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  2. Fauziah Ariff
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© 2016 Nick B. Firoozye and Fauziah Ariff

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Firoozye, N.B., Ariff, F. (2016). Probability Applied. In: Managing Uncertainty, Mitigating Risk. Palgrave Macmillan, London. https://doi.org/10.1057/9781137334541_5

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