Mastering R for Quantitative Finance

Conventions

In this book, you will find a number of text styles that distinguish between different kinds of information. Here are some examples of these styles and an explanation of their meaning.

Any command-line input or output is written as follows:

#generate the two time series of length 1000
set.seed(20140623)         #fix the random seed
N <- 1000                  #define length of simulation
x <- cumsum(rnorm(N))      #simulate a normal random walk
gamma <- 0.7               #set an initial parameter value
y <- gamma * x + rnorm(N)  #simulate the cointegrating series
plot(x, type='l')          #plot the two series
lines(y,col="red")

New terms and important words are shown in bold. Words that you see on the screen, for example, in menus or dialog boxes, appear in the text like this: "Another ...