Neural Networks in Investments Essay -- Computers Technology Investing

queasy webs in InvestmentsI. ABSTRACTInvestment managers often find themselves overwhelmed with the large follow of data obtained from the financial markets. Most of the data available is numeric and thundering in nature, making the decision-making process harder. These decisions unremarkably rely on the integrating of statistical measures that attempt to compress much of the data and qualitative depictions much(prenominal) as graphs and bar charts with news events and other pertinent information. Investment decisions usually involve non-linear relationships among the various components of the data. Computers in general, are very adept at dealing with large amounts of numeric information. However, some algorithms are crucial in analyzing and combining disparate information that can impact security prices. bionic Intelligence based methods uses clever algorithms and rules of thumb (heuristics) in the decision-making process. anxious Network and expert systems applications hav e been successfully deployed in the domain of Finance, and in the field of study of investment management.This paper discusses the basics and the theory behind neural networks and provides an mental hospital to an application area of neural networks in the domain of Finance. The application areas of Neural Networks discussed in the paper are corporate finance, financial institutions, and the professional investor. The endeavor of the second paper will be to discuss the specifics of each of these applications.II. admittanceNeural network computing is an information processing method that was highly-developed from research to make computers that could imitate the way people learned. The field ab initio grew from 1930s ideas about how biological systems like the human brain works... ...in of finance is essential for further development.V. REFERENCES 1. Deboeck Guido J., Trading on the Edge Neural, Genetic, and Fuzzy Systems for disorderly Financial Markets, John Wiley & Sons In c., 1994. 2. Trippi Robert R., Lee Jae K., State-of-the-Art Portfolio Selection Using acquaintance Based Systems to Enhance Investment Performance, Probus Publishing Company, 1992. 3. Refenes Paul, Neural Networks in the ceiling Markets, John Wiley & Sons Inc., 1995. 4. Proceedings of the Second International Conference on factitious Intelligence Applications on Wall Street, April 19-22 1993, New York City. 5. Neural Network Resources on the World Wide Web, http//www.med-web.com/nnres/ 6. Neural Network Toolbox, http//www.mathworks.com/products/neuralnet/ 7. Neural Network web References, http//ftp.funet.fi/pub/sci/neural/www/www-catalogue.html