The Misbehavior of Markets: A Fractal View of Financial Turbulence

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Description

Mathematical superstar and inventor of fractal geometry, Benoit Mandelbrot, has spent the past forty years studying the underlying mathematics of space and natural patterns. What many of his followers do not realize is that he has also been watching patterns of market change. In The (Mis)Behavior of Markets, Mandelbrot joins with science journalist and former Wall Street Journal editor Richard L. Hudson to reveal what a fractal view of the world of finance looks like. The result is a revolutionary reevaluation of the usual tools and models of up to date financial theory. Markets, we learn, are far riskier than we now have wanted to imagine. From the gyrations of IBM’s stock price and the Dow, to cotton trading, and the dollar-Euro exchange rate–Mandelbrot shows that the world of finance can also be understood in more accurate, and volatile, terms than the tired theories of yesteryear.The ability to simplify the complex has made Mandelbrot some of the century’s most influential mathematicians. With The (Mis)Behavior of Markets, he puts the tools of higher mathematics into the hands of each and every person involved with markets, from financial analysts to economists to 401(k) holders. Markets isn’t seen as “secure bets” again.
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