Now in paperback, “a compelling, accessible, and provocative piece of work that forces us to question many of our assumptions” (Gillian Tett, author of Fool’s Gold).
Quants, physicists working on Wall Street as quantitative analysts, have been widely blamed for triggering financial crises with their complex mathematical models. Their formulas were meant to allow Wall Street to prosper without risk. But in this penetrating insider’s look at the recent economic collapse, Emanuel Derman—former head quant at Goldman Sachs—explains the collision between mathematical modeling and economics and what makes financial models so dangerous. Though such models imitate the style of physics and employ the language of mathematics, theories in physics aim for a description of reality—but in finance, models can shoot only for a very limited approximation of reality. Derman uses his firsthand experience in financial theory and practice to explain the complicated tangles that have paralyzed the economy. Models.Behaving.Badly. exposes Wall Street’s love affair with models, and shows us why nobody will ever be able to write a model that can encapsulate human behavior.
eBook - ePub
Models.Behaving.Badly.
Why Confusing Illusion with Reality Can Lead to Disaster, on Wall Street and in Life
- 240 pages
- English
- ePUB (mobile friendly)
- Available on iOS & Android
eBook - ePub
Models.Behaving.Badly.
Why Confusing Illusion with Reality Can Lead to Disaster, on Wall Street and in Life
About this book
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Table of contents
- Cover
- Description
- Title Page
- Copyright
- Part I: Models
- Part II: Models Behaving
- Part III: Models Behaving Badly
- Appendix: Escaping Bondage
- Acknowledgments
- Notes
- Index
- Endnote
- About the Author
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Yes, you can access Models.Behaving.Badly. by Emanuel Derman in PDF and/or ePUB format, as well as other popular books in Business & Finance. We have over 1.5 million books available in our catalogue for you to explore.