Models.Behaving.Badly.: Why Confusing Illusion with Reality

Models.Behaving.Badly.: Why Confusing Illusion with Reality Can Lead to Disaster, on Wall Street and in Life
- Used Book in Good Condition
Now in paperback, â€œa compelling, accessible, and provocative piece of work that forces us to question many of our assumptionsâ€ (Gillian Tett, author of Foolâ€™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 insiderâ€™s look at the recent economic collapse, Emanuel Dermanâ€”former head quant at Goldman Sachsâ€”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 realityâ€”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 Streetâ€™s love affair with models, and shows us why nobody will ever be able to write a model that can encapsulate human behavior.
Country USA
Brand Free Press
Manufacturer Free Press
Binding Paperback
ItemPartNumber FLBOOKSTOREBL9781439164990
ReleaseDate 2012-07-24
UnitCount 1
EANs 9781439164990

Country	USA
Brand	Free Press
Manufacturer	Free Press
Binding	Paperback
ItemPartNumber	FLBOOKSTOREBL9781439164990
ReleaseDate	2012-07-24
UnitCount	1
EANs	9781439164990

Models.Behaving.Badly.: Why Confusing Illusion with Reality Can Lead to Disaster, on Wall Street and in Life

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