Pandora’s Risk: Uncertainty at the Core of Finance

Pandora’s Risk: Uncertainty at the Core of Finance

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.
Country USA
Brand Columbia University Press
Manufacturer Columbia Business School Publishing
Binding Paperback
UnitCount 1
EANs 9780231151733
ReleaseDate 0000-00-00

Country	USA
Brand	Columbia University Press
Manufacturer	Columbia Business School Publishing
Binding	Paperback
UnitCount	1
EANs	9780231151733
ReleaseDate	0000-00-00

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