Mathematician's Insightful Discussion on the Stock Market

Author: Paulos
Publisher:
Publish Date: 2005-01-01
Features: For general investors, it can be quite dizzying to understand the stock market after the roller-coaster ride of market fluctuations over the past decade. John Allen Paulos, renowned for his ability to explain complex concepts in an accessible way, presents an engaging discussion of abstract theories ranging from 'beta' to the efficient market hypothesis in this book. You may not suddenly start making huge profits the moment you put the book down, but you will gain a better understanding of the intrinsic logic of the stock market, and you will find it enjoyable. It is a book filled with irony and enlightenment. In it, the best-selling author Paulos tells us that mathematical tools can help us understand the quirks of the stock market. Using well-known stories, vivid short essays, seemingly plausible arguments, enigmatic puzzles, and even snippets from movie plots, he explores the curiosity of thoughtful readers about the stock market: Is the market efficient? Are there effective methods for stock selection? How can risk be quantified? What are the common mistakes? How do wave theory and common psychological biases affect investment decisions? Is there truly a way to outperform the market? Does having more mathematical knowledge increase the chances of winning?