Having Forgotten to Doubt, “Modern Finance” drove us Insane

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…

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Elise Payzan Le Nestour on “The Brain on Risk”

On The Ubiquitous Missing Information in Markets: What Neuroeconomics Has to Say 'Ambiguity' is the Hallmark of Trading and Investing The situation of taking a position when the odds are uncertain because of missing information is referred to by economists as "ambiguous". F Knight in his book Risk, Uncertainty, and…

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