Nicholas Teebagy
Introduction by Amir D. Aczel
The Math Behind Wall Street
How the Market Works and How to Make It Work for You

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"The Math Behind Wall Street by Professor of Mathematics Nicholas M. Teebagy can be an important help to readers preparing to select the best bargain stocks for longterm investing, both investors themselves and those professionals who help investors." — Sir John Templeton.

Intimidated by the investment risks and technical jargon of the stock market? Or perhaps you're already an expert on the numbers — think you know everything there is to know? In this long-awaited book, a mathematician speaks intelligently to both players and coaches on all levels of the playing field.

Teebagy starts at the beginning and explores everything from terms like statistics and probability, covariance and correlation, the riskless portfolio idea and more difficult concepts, such as the beta chart. Beta is the slope of a regression line for the relationship between any given stock and the market as a whole. Sound tricky? It's not. If, for example, a security has a beta of 2.0, on average with the market, this simply means that when the market goes up, the security goes up twice as much (a security with a beta of 3.0 would go up three times as much). Beginning with a broad spectrum of terms and concepts, the book builds on each lesson to reinforce general knowledge and prepare the reader for more challenging ideas, such as the relatively new and very powerful GARCH model and neural networks.

Randomness permeates everything in the financial world. As we increasingly understand how to deal with uncertainty and standard deviations, the numbers lose their intimidation and Wall Street loses its menace. This book will help investors and advisors minimize their risk.

Nick Teebagy is a professor in the Department of Mathematics at Bentley College in Waltham, Massachusetts. In 1983, he received his PhD (in Statistics/Mathematics) from Boston University, where he had done his undergraduate work as well.

The introduction is by Amir D. Aczel, also a mathematics professor. Aczel is the bestselling author of God's Equation: Einstein, Relativity and the Expanding Universe, Fermat's Last Theorem: Unlocking the Secret of an Ancient Mathematical Problem, and How to Beat the I.R.S. at Its Own Game.