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lastlib

(27,407 posts)
7. A math degree isn't essential, per se....
Wed Jun 13, 2012, 02:15 PM
Jun 2012

...but it certainly helps me to have a background in math. Investment rarely involves integral calculus or differential equations, but having an understanding of exponential functions to calculate future values, market correlations, geometric averages, etc., can certainly help you grasp how investments work for you. A good statistics course will give an investor many of the tools needed to get a handle on this stuff.

Granted, in more advanced areas of investments, there are some calculations that are more akin to particle phyiscs, but the typical investor isn't going to need to employ it. If you're developing binary option pricing strategy, you're probably working for an institutional investor anyway, and have access to the computer/mathematical tools to do it. Average Joe ain't gonna be doing that.

If you need a good book on sthe subject of investment math, try "Quantitative Methods For Investment Analysis" by DeFusco & McLeavey. It's admittedly a pretty heady work, a college-level textbook, but it can give you all the tools you need for the job.

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