Uncertainty
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Or Maybe Your Model Leaves Something to be Desired…
From last week’s WSJ (requires a paid subscription for now, pending Rupert’s next move): “Wednesday is the type of day people will remember in quant-land for a very long time,” said Mr. Rothman, a University of Chicago Ph.D. who ran a quantitative fund before joining Lehman Brothers. “Events that models only predicted would happen once…
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Book Review: The Black Swan
The Black Swan, by Nassim Nicholas Taleb is sort of a follow-up to his earlier Fooled By the Randomness, which dealt with why people are poorly suited to decision-making in the face of uncertainty. The Black Swan deals with the “impact of the highly improbable” and argues that these events, dubbed Black Swans, are far…