Mathematics and Statistics for Financial Risk Management

Mathematics and Statistics for Financial Risk Management Author(s): Michael B. Miller

Difference between 2nd and 1st editions
Side by side comparison of table of contents helps to figure out the most significant changes.

Key differences between 2nd and 1st editions

  • Time lapse between current and previous editions: 1 year (2013 vs 2012).
  • The First edition of Miller's statistics textbook was published in 2012.
  • Chapter 4: New discussions on Triangular and Beta Distributions, which can be used to model default rates and recovery rates.
  • New Chapter 5 "Multivariate Distributions and Copulas" investigates concepts for measuring the risk of portfolios, including joint distributions and copulas.
    • Section "Multivariate Distributions" covers discrete distributions, continuous joint distributions, visualization of probability density function in three dimensions, correlation, and marginal distributions.
    • Section "Copulas" covers definition of copula (a multivariate probability distribution), graphing copulas, how copulas can be used in Monte Carlo simulations, and parameterization of copulas.
  • New Chapter 6 "Bayesian Analysis" covers:
    • Bayes' theorem -- the foundation of Bayesian analysis.
    • Comparison of Bayes vs Frequentists approach - which approach is better?
    • Many-State problems -- extension of Bayesian analysis to any number of possible outcomes.
    • Continuous distributions
    • Bayesian networks -- representation of the causal relationships between different random variables.
    • Comparison of Bayesian networks vs correlation matrices.
  • New Appendix F "Copulas" summarizes the properties of various named copulas.
2nd Edition of
Mathematics and Statistics for Financial Risk Management
eBook, 336 pages
eBook ISBN: 9781118757642
Published by: Wiley, December 12, 2013
Book StorePrice
Hardcover, 336 pages
ISBN-10: 1118750292
ISBN-13: 9781118750292
Published by: Wiley, December 31, 2013
Book StoreNewUsedRent
From: $73.23
$64.98 $94.50 due: Dec 21
$89.25 due: Aug 03
$84.00 due: Jul 09
1st Edition of
Mathematics and Statistics for Financial Risk Management
eBook, 291 pages
eBook ISBN: 9781118244197
Published by: Wiley, January 25, 2012
Book StorePrice
Hardcover, 291 pages
ISBN-10: 1118170628
ISBN-13: 9781118170625
Published by: Wiley, March 06, 2012
Book StoreNewUsedRent
From: $96.99

Saving advice

  • Used 2nd edition can save you $9.72 over the new one.

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