2007-09-06 06:45:00 · 4 answers · asked by ztim21 2 in Education & Reference ➔ Higher Education (University +)
it has nothing to do with investment banking, which is merely aggressive marketing of alleged securities that nobody in their right mind would buy.
most investment banks wont hire anybody that cant pass microecon and you need to know differential (not even integral) calc to pass micro. once that is over, you can forget calc and get on with selling load funds to little old ladies that cant read or understand fine print.
you might need to know enough differential calc to solve simultaneous equations that describe utility maximization and budget constraints, i.e. lagrangian multipliers. that is pretty easy stuff so good luck and happy millions to you.
2007-09-06 06:59:14 · answer #1 · answered by Anonymous · 0⤊ 0⤋
I can think of 3 reasons:
1) Learning more than you need to know about a subject is a whole lot better than not learning as much as you need to know. You may come across a potential investment where a bit of higher math will help you understand or evaluate its prospects.
2) The discipline and logic that you learn will help you in other areas.
3) Calculus instructors get hungry, and need to eat, too.
2007-09-06 06:54:58 · answer #2 · answered by Ralfcoder 7 · 1⤊ 0⤋
Because many of today's more exotic investments and investing models are based on some pretty advanced math. The timing of stock purchases and sales is based on trending analyses that take many variables into account, so now you're talking about multivariable calculus (Calc III at least at most schools). So, bone up on your math!!
2007-09-06 06:53:38 · answer #3 · answered by dansinger61 6 · 0⤊ 0⤋
You need a knowledge of calculus to understand mathematical finance.
2007-09-06 06:55:23 · answer #4 · answered by michinoku2001 7 · 0⤊ 0⤋