Winter 2010 Subscription Campaign

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We at Win-Vector LLC would like to invite our loyal readers to help with our Winter 2010 Subscription Campaign. Please encourage your erudite friends and colleagues to read and subscribe to Continue reading Winter 2010 Subscription Campaign

“Easy” Portfolio Allocation

Posted on Categories Finance, Mathematics, TutorialsTags , , ,

This is an elementary mathematical finance article. This means if you know some math (linear algebra, differential calculus) you can find a quick solution to a simple finance question. The topic was inspired by a recent article in The American Mathematical Monthly (Volume 117, Number 1 January 2010, pp. 3-26): “Find Good Bets in the Lottery, and Why You Shouldn’t Take Them” by Aaron Abrams and Skip Garibaldi which said optimal asset allocation is now an undergraduate exercise. That may well be, but there are a lot of people with very deep mathematical backgrounds that have yet to have seen this. We will fill in the details here. The style is terse, but the content should be about what you would expect from one day of lecture in a mathematical finance course.

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Relative returns: a banker versus trader paradox

Posted on Categories Opinion, Rants, StatisticsTags , , , , 1 Comment on Relative returns: a banker versus trader paradox

Quick Joke.

Q: What is the difference between a banker and a trader?
A: A banker will try and tell you a 10% loss followed by a 10% gain is breaking even.

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