摘要：Financial modeling in recent years erred greatly in predicting the results for the inefficient and inaccurate models designed to estimate and predict the financial risks associated with newly developed financial instruments. There are so many of these financial instruments today designed to satisfy the appetite of an extremely wide variety of investors with widely varying goals. Standard statistics coupled with financial instruments designed to ignore and not even consider all the complexities of investing were a significant cause of the financial collapse in 2007-2008. Regulation of the financial instruments often referred to as “swaps” and “derivatives” with values based on averages were misunderstood by inept buyers and sellers. Hence, a goal of modern finance to extend and explore our knowledge of financial markets and their associated decision making contains elements which increase our knowledge of economic events. Social good is produced when we understand financial decision making better. Hence, the subject of modern financial analysis is valuable to those beyond the field of finance and includes the related methods discussed in operations research, business and economic statistics and applied mathematics in decision modeling.
