The new edition of this influential textbook, geared towards graduate or advanced undergraduate students, teaches the statistics necessary for financial engineering. In doing so, it illustrates concepts using financial markets and economic data, R Labs with real-data exercises, and graphical and analytic methods for modeling and diagnosing modeling errors. These methods are critical because fin…
The first edition of this book has received a very warm reception. A number of instructors have adopted this work as a textbook in their courses. Moreover, both novices and seasoned professionals have been using the book for selfstudy. The enthusiastic response to the book motivated a new edition. One major change is that there are now two authors. The second edition improves the book in se…