Doron Peleg

Doron Peleg has worked in both academia and industry. He has taught Finance and Entrepreneurial Management at institutions of higher education including Hunter and Lehman colleges in New York City and Tel Aviv and Tel Hai colleges in Israel.

  • Fundamental Models in Financial Theory

    Fundamental Models in Financial Theory

    Doron Peleg

    Understanding and applying complex modern financial models in real life scenarios, including the Black-Litterman model for constructing an optimal portfolio while incorporating personal views.

    This book provides an innovative, integrated, and methodical approach to understanding complex financial models, integrating topics usually presented separately into a comprehensive whole. The book brings together financial models and high-level mathematics, reviewing the mathematical background necessary for understanding these models organically and in context. It begins with underlying assumptions and progresses logically through increasingly complex models to operative conclusions. Readers who have mastered the material will gain the tools needed to put theory into practice and incorporate financial models into real-life investment, financial, and business scenarios.

    Modern finance's most bothersome shortcoming is that the two basic models for building an optimal investment portfolio, Markowitz's mean-variance model and Sharpe and Treynor's Capital Asset Pricing Model (CAPM), fall short when we try to apply them using Excel Solver. This book explores these two models in detail, and for the first time in a textbook the Black-Litterman model for building an optimal portfolio constructed from a small number of assets (developed at Goldman Sachs) is thoroughly presented. The model's integration of personal views and its application using Excel templates are demonstrated. The book also offers innovative presentations of the Modigliani–Miller model and the Consumption-Based Capital Asset Pricing Model (CCAPM). Problems at the end of each chapter invite the reader to put the models into immediate use. Fundamental Models in Financial Theory is suitable for classroom use or as a reference for finance practitioners.

  • Model Checking

    Model Checking

    Edmund M. Clarke, Jr., Orna Grumberg, and Doron Peleg

    Model checking is a technique for verifying finite state concurrent systems such as sequential circuit designs and communication protocols. It has a number of advantages over traditional approaches that are based on simulation, testing, and deductive reasoning. In particular, model checking is automatic and usually quite fast. Also, if the design contains an error, model checking will produce a counterexample that can be used to pinpoint the source of the error. The method, which was awarded the 1998 ACM Paris Kanellakis Award for Theory and Practice, has been used successfully in practice to verify real industrial designs, and companies are beginning to market commercial model checkers.

    The main challenge in model checking is dealing with the state space explosion problem. This problem occurs in systems with many components that can interact with each other or systems with data structures that can assume many different values. In such cases the number of global states can be enormous. Researchers have made considerable progress on this problem over the last ten years.

    This is the first comprehensive presentation of the theory and practice of model checking. The book, which includes basic as well as state-of-the-art techniques, algorithms, and tools, can be used both as an introduction to the subject and as a reference for researchers.