Kirjahaku

Author of the acclaimed work Iceberg Risk: An Adventure in Portfolio Theory, Kent Osband argues that uncertainty is central rather than marginal to finance. Markets don't trade mainly on changes in risk. They trade on changes in beliefs about risk, and in the process, markets unite, stretch, and occasionally defy beliefs. Recognizing this truth would make a world of difference in investing. Belittling uncertainty has created a rift between financial theory and practice and within finance theory itself, misguiding regulation and stoking huge financial imbalances. Sparking a revolution in the mindset of the investment professional, Osband recasts the market as a learning machine rather than a knowledge machine. The market continually errs, corrects itself, and makes new errors. Respecting that process, without idolizing it, will promote wiser investment, trading, and regulation. With uncertainty embedded at its core, Osband's rational approach points to a finance theory worthy of twenty-first-century investing.

Author of the acclaimed work Iceberg Risk: An Adventure in Portfolio Theory, Kent Osband argues that uncertainty is central rather than marginal to finance. Markets don't trade mainly on changes in risk. They trade on changes in beliefs about risk, and in the process, markets unite, stretch, and occasionally defy beliefs. Recognizing this truth would make a world of difference in investing. Belittling uncertainty has created a rift between financial theory and practice and within finance theory itself, misguiding regulation and stoking huge financial imbalances. Sparking a revolution in the mindset of the investment professional, Osband recasts the market as a learning machine rather than a knowledge machine. The market continually errs, corrects itself, and makes new errors. Respecting that process, without idolizing it, will promote wiser investment, trading, and regulation. With uncertainty embedded at its core, Osband's rational approach points to a finance theory worthy of twenty-first-century investing.

How well do capital markets capture the wisdom of crowds? How badly do they capitulate to madness? Rival findings have split academic finance into two schools. The orthodox school treats markets as knowledge machines that foresee future risks well and respond soberly to them. The behaviorist school treats markets as ships of fools, careening between complacency and panic.Rational Myopia advances a new paradigm. It models capital markets as driven mostly by rational gamblers unable to sample the future risks they must estimate. Like drunks who search under lampposts for car keys lost somewhere else, capital markets obsess over current news because the present is far better illuminated than the future. While markets tend to digest new evidence efficiently, they have no knack for predicting future twists and turns. This makes them rationally myopic: weak long-term predictors but great short-term error correctors.Rational Myopia counterposes this paradigm to both orthodox-style rational expectations and behaviorist-style irrational exuberance. Yet it doesn't dismiss the insights of either camp. Instead, it helps unify them by demonstrating that rational learning can take both calm and turbulent forms. To make these demonstrations clear and intuitive, this book focuses heavily on simulations tied to simple games or historical data. Most of them draw on variants of a single equation, which turns out to resolve half a dozen major puzzles in finance theory.

Calculus offers some of the greatest problem-solving methods ever discovered. Anyone who understands basic algebra and geometry can learn it. The main challenge is the triple-D way calculus is usually taught: dry, dull and daunting.Calculus for the Curious offers an alternative. It is short: only two hundred pages. It is colorful and chock full of pictures. It motivates all its concepts through interesting problems and offers the simplest derivation of every result. It also links to dozens of activities on www.geogebra.org that offer vivid demonstrations of how calculus works. Despite its brevity, Calculus for the Curious covers all standard first-year calculus topics and tackles a few challenges that go beyond. Remarkably, it does this without presuming any prior knowledge of standard precalculus. Instead, it introduces basic calculus concepts as useful tools for solving practical problems. It then uses these tools to explain infinite series, logarithms, exponentials, and trigonometric functions. This simplifies a host of clutter.Tired of memorizing a host of unrelated math facts? Tired of formulas with no visible connection to the wonders of our world? Calculus for the Curiouswill help you restore your love of learning, whether you are teaching yourself or preparing to teach others.