The (Mis)behavior of Markets: A Fractal View of Risk, Ruin and Reward

by Richard L. Hudson and Benoit B. Mandelbrot

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From the inventor of fractal geometry, a revolutionary new theory that overturns our understanding of how markets work. Benoit B. Mandelbrot, one of the century's most influential mathematicians, is world-famous for making mathematical sense of a fact everybody knows but that geometers from Euclid on down had never assimilated: Clouds are not round, mountains are not cones, coastlines are not smooth. To these classic lines we can now add another example: Markets are not the safe bet your broker may claim. In his first book for a general audience, Mandelbrot, with co-author Richard L. Hudson, shows how the dominant way of thinking about the behavior of markets-a set of mathematical assumptions a century old and still learned by every MBA and financier in the world-simply does not work.As he did for the physical world in his classic , Mandelbrot here uses fractal geometry to propose a new, more accurate way of describing market behavior. The complex gyrations of IBM's stock price and the dollar-euro exchange rate can now be reduced to straightforward formulae that yield a far better model of how risky they are. With his fractal tools, Mandelbrot has gotten to the bottom of how financ
  • ISBN10 0465043550
  • ISBN13 9780465043552
  • Publish Date 3 August 2004
  • Publish Status Out of Stock
  • Out of Print 13 December 2008
  • Publish Country US
  • Imprint Basic Books
  • Format Hardcover
  • Pages 352
  • Language English