Interactive Jupyter notebooks for each chapter. Execute models directly. Modify parameters. Export results. Each notebook implements the production-grade code referenced in the text.
Financial statement decomposition. Income statement as flow. Balance sheet as stock. Cash flow as the translation layer between accounting and economics.
Discounting frameworks. Yield curve construction from treasury data. Duration and convexity calculations with sensitivity analysis.
NPV and IRR computation. Payback period analysis. Project selection under capital constraints with integer programming.
Return distribution analysis. Moments computation. Correlation matrices and covariance estimation for portfolio inputs.
Systematic risk decomposition. Beta estimation with rolling windows. Fama-French three-factor and five-factor model implementation.
WACC derivation and sensitivity. Capital structure optimization. Iterative debt capacity estimation for levered firms.
Free cash flow projection engine. Terminal value calculation. Monte Carlo sensitivity analysis with tornado diagrams.
Trading multiples analysis. Comparable company selection algorithms. Sector adjustment methodology for cross-industry comparisons.
Option-embedded project valuation. Binomial tree construction for expansion and abandonment options. Flexibility value quantification.
Efficient frontier computation. Sharpe ratio maximization. Constraint handling for long-only, sector limits, and tracking error.
Black-Litterman implementation with view specification. Risk parity allocation. Factor-based portfolio construction.
Brinson-Hood-Beebower attribution. Allocation vs selection decomposition. Multi-period linking and risk contribution analysis.
Bond pricing and yield calculations. Duration matching for liability-driven investment. Credit spread decomposition.
Integration case study combining DCF, relative valuation, and portfolio construction. Full workflow from data to decision.