Have you ever asked acturials whether they do statistics (as compared to financial analysis)? None that I ever worked with ever brought up statistics - they did math and finance not stats

not only have i asked them. i *STUDIED* actuarial sciences. i took courses in it, and i'm well aware of the mathematical and statistical requirements on them. and i know it's just the fact that they are so specialised in the area of risk management, that a lot of the statistics and mathematics relevant to actuaries tend to stay within their confines.

and what, in your opinion is the difference between financial mathematics and statistics? from just look at this very specific examples from the wikipedia article on mathematical finance:

http://en.wikipedia.org/wiki/Mathematical_finance
"Quantitative derivatives pricing was initiated by Louis Bachelier in The Theory of Speculation (published 1900), with the introduction of the most basic and most influential of processes, the

**Brownian motion**, and its applications to the pricing of options. Bachelier modeled

**the time series **of changes in the logarithm of stock prices as

**a random walk **in which the short-term changes had a finite variance. This causes longer-term changes to

**follow a Gaussian distribution**. Bachelier's work, however, was largely unknown outside academia."

"the fundamental theorem of asset pricing by Harrison and Pliska (1981), according to which the suitably normalized current price P0 of a security is arbitrage-free, and thus truly fair, only if there exists a

**stochastic process Pt **with

**constant expected value **which describes its future evolution: A process satisfying (1) is called a "

**martingale**". A martingale does not reward risk. Thus the probability of the normalized security price process is called "risk-neutral" and is typically denoted by the blackboard font letter "

everything i highlighted comes from statitics. now, show me ONE instance of mathematical financial theory where statistics is not involved. just ONE and even if it's not explicitly there i can guarentee you i can link it to something in statistics because finance is not an exact science. there is too much uncertainty involved in it and wherever uncertainty rears its head, statistics is present