In the previous chapter, we learned about reinforcement learning. We learned how to automate bank decision-making using reinforcement learning. We also learned about AI modeling techniques such as Monte Carlo simulation, the logistic regression model, decision trees, neural networks, and deep learning. We then learned how to build a bankruptcy risk prediction model and used decision-making to fund a loan using reinforcement learning.
In this chapter, we will understand the basic financial and capital market concepts. We will look at how AI can help us in optimizing the best capital structure by running the risk models to generate sales forecasts using macro-economic data. It is useful to plan the internal ...
