Read the PDF version of this international bestseller and discover the hidden patterns and unpredictability of markets. The result is no less than the foundation for a new science of finance. What if the conventional wisdom about financial markets is wrong In this groundbreaking book, Benoit Mandelbrot and Richard Hudson challenge the assumptions of modern finance and offer a new way of understanding risk, reward and turbulence based on fractal geometry. From the gyrations of the Dow to the dollar-euro exchange rate, Mandlebrot shows how to understand the volatility of markets in far more accurate terms than the failed theories that have repeatedly brought the financial system to the brink of disaster.
He uses fractal geometry to propose a new, more accurate way of describing market behavior. 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. To these insights we can now add another example: Markets are not the safe bet your broker may claim. Mandelbrot is world-famous for inventing fractal geometry, 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.
Science Fiction & Fantasy - Available NowĪ groundbreaking mathematician presents a new model for understanding financial marketsīenoit B.
