The mathematics of financial markets

Abstract

We are all aware of the tremendous upheaval that has taken place in the financial markets over the last year. Well established banks and brokerage house have failed and had to be liquidated or merged. Is it possible to model the financial markets to help understand the relationship; between the most dynamic variables, Gold, The Dow Jones Industrial Average. Using mathematics to look for correlations of sets of these data has been performed by mathematicians. By using Microsoft Excel to examine Gold and the Dow Jones Industrial Average we would like to find a method that would enable us to simplify and see the fluctuations of the variables. © American Society for Engineering Education, 2010.