ABSTRACT
The objective of this chapter is to make the readers conversant with the basic statistical measures, required to demystify fixed income analytics. In present scenario, when the financial market and its products, including fixed income or debt products, are relatively complicated to deal with, it is very difficult for a market player to successfully cope up with these instruments without having reasonable understanding towards some basic statistical measures, essentially required to analyze the products, their financial viability through analyzing risk and return. Therefore, an attempt is made to simplify some of the basic statistical concept possibly required by finance professional. At the end of this chapter, the readers are expected to be familiar with:
Descriptive Statistical Measures, required to analyze financial market data
Correlation and Regression Analysis, required to understand and analyze the interrelationship between various segment of financial markets and between financial products.
Theory of Probability and few important probability distribution that some financial data are expected to follow, to understand and analyze the statistical behavior of financial products using their historical observations.
Testing the Statistical Significance of necessary statistical estimates required to analyze the financial market data.
