They’re still teaching their economic theories (Black-Scholes) in school. I have to do calculations pretending that the stock market has a normal probability distribution, and nobody has mentioned any problems with this (edit: I feel it has value as a model, but no one has mentioned limitations). I feel like the emperor has no clothes, and my class is about his fancy wardrobe.
There should be no need to mention these limitations. They sold be obvious to people using them, and of course there are academic discussions of the limitations of every model. I think they’re just not being presented to you because they’re well known.
Anyone who uses models should know that all models are wrong, but some models are useful.
Indeed, but an academic discussion about it’s limitations would be nice, that’s why I’m taking a class. Literally, it’s undergrad, that would be a nice topic.
Also, I have to point out, this happened, and it was not brought up in class except by a student in a discussion topic (online course). Seems important that the dudes that came up with the fancy equation bankrupted their hedge-fund, just saying.
They’re still teaching their economic theories (Black-Scholes) in school. I have to do calculations pretending that the stock market has a normal probability distribution, and nobody has mentioned any problems with this (edit: I feel it has value as a model, but no one has mentioned limitations). I feel like the emperor has no clothes, and my class is about his fancy wardrobe.
There should be no need to mention these limitations. They sold be obvious to people using them, and of course there are academic discussions of the limitations of every model. I think they’re just not being presented to you because they’re well known.
Anyone who uses models should know that all models are wrong, but some models are useful.
Indeed, but an academic discussion about it’s limitations would be nice, that’s why I’m taking a class. Literally, it’s undergrad, that would be a nice topic.
Also, I have to point out, this happened, and it was not brought up in class except by a student in a discussion topic (online course). Seems important that the dudes that came up with the fancy equation bankrupted their hedge-fund, just saying.