Investment theories and broad generalisations are often based on convenience rather than real-world evidence. For example, a whole edifice of market theory has been built on the assumption that market prices are normally distributed. Yet every few years one or more markets experiences a price move that academics insist should only occur once in a million years, being so-many standard deviations from the “norm”.
One might think the repeated occurrence of these events would lead to the obvious conclusion that the price models don’t fit the real world. Instead they are dismissed as a rarity, unlikely to be repeated and better ignored. Convenience trumps reality. To make matters worse investors bring along their own sets of unsubstantiated beliefs that lead to misguided conclusions and flawed investment decisions.
대한민국 최근 뉴스, 대한민국 헤드 라인
Similar News:다른 뉴스 소스에서 수집한 이와 유사한 뉴스 기사를 읽을 수도 있습니다.
출처: dailymaverick - 🏆 3. / 84 더 많은 것을 읽으십시오 »