From Classical to Modern Analysis

The transition from classical to modern physics in the ?rst half of the twentieth c- tury by quantum and relativity theories affected some of the most fundamental notions of physical thinking, such as matter, radiation, space, and time. This tran- tion thus represents a challenge for any attempt to understand the structures of a s- enti?c revolution. The present four-volume work aims at a comprehensive account of the way in which the work of Albert Einstein and his contemporaries changed our understanding of space, time, and gravitation. The conceptual framework of classical nineteenth-century physics had to be fundamentally restructured and reinterpreted in order to arrive at a theory of gravitation compatible with the new notions of space and time established in 1905 by Einstein’s special theory of relativity. Whereas the classical theory of gravitation postulated an instantaneous action at a distance, Einstein’s new relativistic kinematics rather suggested an analogy between the gravitational ?eld and the electromagnetic ?eld, propagating with a ?nite speed. It is therefore not surprising that Einstein was not alone in addressing the problem of formulating a theory of gravitation that complies with the kinematics of relativity t- ory. The analysis of these alternative approaches, as well as of earlier alternative approaches to gravitation within classical physics, turns out to be crucial for identi- ing the necessities and contingencies in the actual historical development.

In recent years portfolio optimization and construction methodologies have become an increasingly critical ingredient of asset and fund management, while at the same time portfolio risk assessment has become an essential ingredient in risk management, and this trend will only accelerate in the coming years. Unfortunately there is a large gap between the limited treatment of portfolio construction methods that are presented in most university courses with relatively little hands-on experience and limited computing tools, and the rich and varied aspects of portfolio construction that are used in practice in the finance industry. Current practice demands the use of modern methods of portfolio construction that go well beyond the classical Markowitz mean-variance optimality theory and require the use of powerful scalable numerical optimization methods. This book fills the gap between current university instruction and current industry practice by providing a comprehensive computationally-oriented treatment of modern portfolio optimization and construction methods. The computational aspect of the book is based on extensive use of S-Plus®, the S+NuOPT™ optimization module, the S-Plus Robust Library and the S+Bayes™ Library, along with about 100 S-Plus scripts and some CRSP® sample data sets of stock returns. A special time-limited version of the S-Plus software is available to purchasers of this book