Define terminology used in quantitative analysisSolutionA bu

Define terminology used in quantitative analysis.

Solution

A business or financial analysis technique that is used to understand market behavior by employing complex mathematical and statisticalmodeling, measurement, and research. By assigning a numerical value to variables, quantitative analysts try to replicate reality inmathematical terms. Quantitative analysis helps measure performance evaluation or valuation of a financial instrument. It also can be usedto predict real-world events such as changes in a share\'s price.

Investopedia explains Quantitative Analysis

In broad terms, quantitative analysis is a way of measuring things. Examples of quantitative analysis include everything from simple financialratio calculations such as earnings per share to more complicated analyses such as discounted cash flow or option pricing. Althoughquantitative analysis is a powerful tool for evaluating investments, it only tells half the story; the other half is qualitative analysis. In financialcircles, quantitative analysts are referred to as quants, quant jockeys, and rocket scientists.

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