Modelling Reality and Personal Modelling

This book is on the theory and practice of quantitative financial research that is taking place in Eurpoe. It tries to demonstrate the variety of research that is currently being undertaken. This includes the practical, such as the financing of small firms in the Netherlands, the use of subjectivity in forecasting, and the management of swap portfolios. It also includes the empirical such as an examiniation of various European stock indices, the construction of a European index fund, simulation of pension funds, and pricing of mortgage-backed securities using parallel processing. Purely theoretical research is also described such as the relationship between dominanace and the internal rate of return, the behaviour of market traders, and the allocation of assets under risk aversion. This volume should be of interest to researchers in and consumwers of quantitative financial work.