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Linear Algebra in the Financial World

by Barbara Swart (University of Pretoria, South Africa)

This article originally appeared in:
College Mathematics Journal
May, 2001

Subject classification(s): Mathematical Economics
Applicable Course(s): 7.4 Applied Statistical Analysis

Linear algebra is used to study financial trading strategies and expectations. Financial conditions are examined via matrix equations, using rank, column space, and null space arguments.


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Capsule Course Topic(s):
Linear Algebra | Bases
Linear Algebra | Linear Independence
Linear Algebra | Matrix Algebra
Linear Algebra | Span
Linear Algebra | Vector Spaces, Subspaces
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