Risk ain't what it used to be - if fact, most of the time it isn't even risk at all. Instead it is something called Knightian Uncertainty - or the fundamental inability of humans to know for sure what will happen tomorrow. Yet we have to make decisions about tomorrow…
Portfolio selection: Let's exhume the buried man! In his milestone paper "Portfolio Selection" published in the Journal of Finance in 1952, Harry Markowitz, the pioneer of "modern finance," recommends to use the Expected return-Variance (E-V) rule, both as a working hypothesis to explain investment behavior and as a guide to…
The NY Times esteemed Op-ed and they leave out the best part - as mentioned in our earlier post today. It is all fine and well to notice that we behave irrationally, it is all fine and well to say that some things are Black Swans... what it is NOT…
