| Financial Toolbox | |
Matrix Algebra Refresher
Matrix algebra and matrix operations are fundamental to using MATLAB in financial analysis and engineering. The topics discussed in this section include:
These explanations should help refresh your skills.
William Sharpe's Macro-Investment Analysis also provides an excellent explanation of matrix algebra operations using MATLAB. It is available on the Web at
| Note When you are setting up a problem, it helps to "talk through" the units and dimensions associated with each input and output matrix. In the example under Multiplying Matrices below, one input matrix has "five days' closing prices for three stocks," the other input matrix has "shares of three stocks in two portfolios," and the output matrix therefore has "five days' closing values for two portfolios." It also helps to name variables using descriptive terms. |
| | Transposing Matrices | Adding and Subtracting Matrices | |