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View Diary: The algebra formula that saved an industry (258 comments)

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  •  The Wall Street firms hired a lot of (2+ / 0-)
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    condorcet, Larsstephens

    Math and physics people, to set up the models for computerized trading, arbitrage and for risk analysis. They we called "Quants" (for Quantitative Analyst).

    These guys made a lot of money, but part of the problem was that they didn't think like Hedge Fund managers, and the Hedge fund managers would say "Hey, I don't understand the details, but these guys are Phd Mathematicians, so what could go wrong...?

    And the quants would say "hey, you didn't tell me that cheaters are allowed to use these formulas and pretend they represent all versions of reality..."

    Without geometry, life is pointless. And blues harmonica players suck.

    by blindcynic on Mon Apr 19, 2010 at 01:16:17 PM PDT

    [ Parent ]

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