👉 Stock math, or quantitative finance, involves using mathematical models and statistical methods to analyze and predict financial markets. It helps investors and analysts understand price movements, risk, and potential returns by applying concepts like probability, calculus, and linear algebra. Key tools include the Black-Scholes model for option pricing, the Capital Asset Pricing Model (CAPM) for expected returns based on risk, and the use of statistical measures like volatility and correlation to assess asset performance and make informed investment decisions.
