Current Trends in Matrix Analysis and its Application to Financial Planning - Assignment Example

Currently, financial planning, implementation, and forecasting are done on the basis of different statistical tools and techniques including matrix analysis (Alice C.. Lee). Different trends and approaches of matrix analysis are widely available however, their perfect application and implementation are associated with the experience and intellect of financial managers. Managers use matrix analysis to make wealth creation policies, health, and care benefits, strategic management, implementation of marketing strategies, debt calculation, and reduction, etc (Matrix Planning Solutions). This paper aims to discuss contemporary approaches to matrix analysis and its application to financial planning. The primary focus is on the Random Matrix Theory, econometric models, risk estimation, portfolio optimization, interactive multiple goal programming, and scalar multiplication (J.P. Bouchaud). All of these financial operations use the basic components of matrix analysis, for instance, consider the interactive multiple goals programming which is extensively required in order to make realistic financial plans and forecasting of future revenues and expenses (Steven D.. Eppinger). 

Key Words:

• Vector Space
• Financial Planning
• Interactive Multiple Goal Programming