Financial Toolbox

Operating Element-by-Element

Finally, element-by-element arithmetic operations are called array operations. To indicate an array operation in MATLAB, precede the operator with a period (.). Addition and subtraction, and matrix multiplication and division by a scalar, are already array operations so no period is necessary. When using array operations on two matrices, the dimensions of the matrices must be the same. For example, given vectors of stock dividends and closing prices

• Dividends = [1.90  0.40  1.56  4.50];
  Prices = [25.625  17.75  26.125  60.50];
  
  Yields = Dividends ./ Prices
  
  Yields =
  
      0.0741    0.0225    0.0597    0.0744
  

Solving Simultaneous Linear Equations

Function Input/Output Arguments