Models. Behaving. Badly.
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Models. Behaving. Badly. by Emanuel Derman
Now in paperback, "a compelling, accessible, and provocative piece of work that forces us to question many of our assumptions" (Gillian Tett, author of Fool's Gold).Quants, physicists working on Wall Street as quantitative analysts, have been widely blamed for triggering financial crises with their complex mathematical models. Their formulas were meant to allow Wall Street to prosper without risk. But in this penetrating insider's look at the recent economic collapse, Emanuel Derman--former head quant at Goldman Sachs--explains the collision between mathematical modeling and economics and what makes financial models so dangerous. Though such models imitate the style of physics and employ the language of mathematics, theories in physics aim for a description of reality--but in finance, models can shoot only for a very limited approximation of reality. Derman uses his firsthand experience in financial theory and practice to explain the complicated tangles that have paralyzed the economy. Models.Behaving.Badly. exposes Wall Street's love affair with models, and shows us why nobody will ever be able to write a model that can encapsulate human behavior.
EMANUEL DERMAN is the Head of Risk at Prisma Capital Partners and a professor of financial engineering at Columbia University, where he directs the program. He is the author of My Life As A Quant, which was named one of Business Week's top ten books of the year and introduced a broad audience to the quant world. He was born in South Africa, but has spent the majority of his professional life in Manhattan, New York City, where he has made significant contributions in a variety of sectors. He began his career as a theoretical physicist, studying unified theories of fundamental particle interactions. In the 1980s, he worked at AT&T Bell Laboratories on business modeling programming languages.
| SKU | Unavailable |
| ISBN 13 | 9781439164990 |
| ISBN 10 | 1439164991 |
| Title | Models. Behaving. Badly. |
| Author | Emanuel Derman |
| Condition | Unavailable |
| Binding Type | Paperback |
| Publisher | Simon & Schuster |
| Year published | 2012-07-24 |
| Number of pages | 240 |
| Cover note | Book picture is for illustrative purposes only, actual binding, cover or edition may vary. |
| Note | Unavailable |