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Warning: Physics Envy May be Hazardous to Your Wealth

Posted by David G Wilson on September 16, 2010 at 23:50

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unknowns, complexity, uncertainty, risk, lo

...Lo observed that the highest rewards seem to flow to people who deal successfully with the most profound levels of unknowns. He concluded by speculating that people with a very high level of self-confidence might be able to use his instrument to pick the most intractable unknowns facing society. If they pick right, and then manage those unknowns successfully, they should do well.

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Comments

Sonia Jaspal September 23, 2010 3:53

Excellent presentation.The explanation on levels of uncertainity and human reaction to it, really is the crux of risk management.
David G Wilson September 16, 2010 23:58

“Physics Envy…” presentation by Prof Andrew Lo: Risk & Uncertainty (in financial systems)
In this entertaining presentation, Andrew Lo poses some very interesting questions and adds further fuel to the argument that a rigorous scientific approach may yet help us undo some of the ills created by man’s feeble attempts to cheat nature - dare I say man-made complexity!? The full blog item can be found here: http://davidgwilson.spaces.live.com/blog/cns!7DF3163703347130!1751.entry?&_c02_vws=1

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