What is Quantitative Finance and how it is beneficial for me in my personal financial management?

Quantitative finance is the use of mathematical models and massive datasets to analyse financial markets and securities. These are used to find optimal pricing of derivative securities such as options, and in risk management for investment portfolios.

For personal financial management, some of the concepts like portfolio allocation might be of help. But this is limited as personal financial management is a micro study whereas quants is a macro thing.

A famous Nobel prize winner who devised a formula for optimal asset allocation said, he personally used 50–50 mix between equity and debt.

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