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What's the hardest (longest-running) financial calculation?
10-06-2020, 10:40 PM
Post: #7
RE: What's the hardest (longest-running) financial calculation?
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Hi, EdS2:

(10-05-2020 02:16 PM)EdS2 Wrote:  Valentin, your comment led me to some specific articles in HP Journal, which might be of interest to other readers (I'm sure you are already familiar with them) and which contain some sample calculations:

Thanks for the links, EdS2, people here are sure to enjoy them.

For built-in functionality, you can be sure that the IRR computation is the hardest, as it involves finding a root of a usually large polynomial (degree 20 or more is typical and up to ~1,500th degree is possible on such a small calculator, see the details here).

And as I said, for financial calculations complexity can be enormous. Have a look at these two (no need to read them, just have a look from top to bottom to ascertain the complexity):

      Pricing the zero-coupon bond (pricing of interest rate derivatives)

      Qualitative behaviour of a financial dynamical system (variables are interest rate, investment demand, price index and average profit margin)

Regards.
V.

  
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RE: What's the hardest (longest-running) financial calculation? - Valentin Albillo - 10-06-2020 10:40 PM



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