December 9, 2011
The (Mis)Behavior Of Markets
EconomicsFinanceadminby Benoit Mandelbrot According to Modern Portfolio Theory, the basis for most of modern stock market analysis, the crash of October 1987 shouldn’t have happened in our lifetimes. In fact, it shouldn’t have happened in the lifetime of the country. It should have happened, perhaps, once in the lifetime of the universe. It was just our good fortune to have lived through it. Now we can relax. In fact, even as Robert Merton and Myron Scholes were accepting the Nobel Prize for their contributions, the markets were preparing to given […]
