This chapter introduces linear regression, the workhorse of statistics and (supervised) learning, which relates an input vector to an output response by means of linear combination.

This chapter introduces the basic terminology and formalism on graph theory. Next, we introduce various types of networks that are of interest in finance.

This chapter introduces the representation and organization of data. We illustrate standard preliminary data manipulation and visualization techniques.

In this chapter, we introduce principal component analysis (PCA), a common practice to reduce its dimensionality, and discuss the link between PCA and low-rank approximations.

This chatper first introduces the kernel trick, which allows us to operate in the original lower-dimensional domain. We then discuss decision tree and ensemble methods for reducing data over-fitting.

This chapter introduces the numerical convex optimization problem that minimize a certain objective function subject to some constraints. We also introduce an efficient algorithm for solving such problems.

This chapter introduces the classical mean/variance portfolio design approach, and discusses extensions of the basic model, including transaction costs, market impact, and risk beyond the variance.

This chapter provides an overview of the topics covered in this, the book’s structure, the scope and presentation of the books, and the target audience for the book.

In this chapter we introduce the main concepts of neural networks (NNs). Next, we present the main building blocks of a neural network and we discuss the most common training techniques.

In this chapter, we focus on linear classifiers such as logistic regression, and linear support vector machines. We then extend to the multi-class case and discuss issues of regularization, sparsity, robustness, and class imbalanace.

When speaking, speakers break down the continuous stream of sounds into smaller units – so-called intonation phrases. Within these intonation phrases, we find a rhythmic pattern of unstressed and stressed syllables, similar to the word stress that we already saw in individual words. This chapter investigates which principles speakers follow when rhythmically grouping the speech flow. Like word stress, the rhythmic structure of utterances does not distinguish meaning in English, or it only does so in a very limited way. However, it does serve important linguistic functions. Additionally, speakers pronounce intonation phrases with specific melodic patterns. Intonation will be dealt with in detail in the subsequent chapter. Rhythm and intonation constitute the suprasegmental level. Even though the suprasegmental level plays a secondary role in the language system of English, rhythm and intonation serve several crucial functions in communicative situations.