Adaptive Markets: Financial Evolution at the Speed of Thought

Synopsis

Cover; Dedication; Contents; Introduction; Financial Fear Factor; Don't Try This At Home; The Great Divide; It's The Environment, Stupid!; Revenge Of The Nerds; Chapter 1. Are We All Homo Economicus Now?; Tragedy And The Wisdom Of Crowds; A Random Walk Through History; The Birth Of Efficient Markets; Efficient Markets Unpacked; What To Expect When You're Expecting; Efficient Markets In Action; Chapter 2. If You're So Smart, Why Aren't You Rich?; Rejecting The Random Walk; Risk Versus Uncertainty And The Ellsberg Paradox; Losing Hurts More Than Winning Feels Good No-limit Texas Hold 'em, Rogue Traders, And Regulatorsprobability Matching And March Madness; Humans As Prediction Machines; It Takes A Theory To Beat A Theory; Culture Shock; Chapter 3. If You're So Rich, Why Aren't You Smart?; Looking Under The Hood; The Microscope Of Neuroscience; Fear; Pain; Pleasure And Greed; Wired-up Traders; The Stuff Good Traders Are Made Of; Mind Over Money Via Neural Currency; I Want It All, And I Want It Now; Chapter 4. The Power Of Narrative; A New Meaning Of Rationality; The Human Fire Alarm And Sprinkler System; The Fear Factor And Finance I Know You Know That I Knowhomo Economicus And The Left Hemisphere; The Prefrontal Cortex As Ceo; The Power Of Self-fulfilling Prophecies; Barbara Ficalora, The Best Third Grade Teacher Ever; Narrative Is Intelligence; Chapter 5. The Evolution Revolution; A Day At The Zoo; The Evolution Revolution; Just-so Stories Or Scientific Fact?; The Power Of Selection; Variety Is The Spice Of Life; It's The Environment, Stupid!; The Emergence Of Homo Sapiens; Enter Homo Economicus; An Evolutionary Pecking Order; Swedish Twins And Savings; Evolution At The Speed Of Thought Sociobiology And Evolutionary Psychologysurvival Of The Richest?; Chapter 6. The Adaptive Markets Hypothesis; It Takes A Theory To Beat A Theory; Simon Says Satisfice; The Superman Jacket; The Adaptive Markets Hypothesis; Probability Matching Explained; Nature Abhors An Undiversified Bet; It's The Environment, Stupid! All Over Again; Homo Economicus And Idiosyncratic Risk; The Origin Of Risk Aversion; Efficient Versus Adaptive Markets; Waylaid By Physics Envy; On The Shoulders Of Giants; Chapter 7. The Galapagos Islands Of Finance; Quantum Mechanics; Mission Impossible The Islands Of Evolutionhedge Fund Archipelago; An Evolutionary History Of The Hedge Fund; The Birth Of Quants; The Revenge Of The Nerds; Quant Goes Mainstream; The Evolution Of The Random Walk; Cell Phones And Kerala Fishermen; Chapter 8. Adaptive Markets In Action; The Traditional Investment Paradigm; The Great Modulation; A New World Order; Risk/reward And Punishment; The Democratization Of Investing; New Species Of Index Funds; Smart Beta Versus Dumb Sigma; Disbanding The Alpha Beta Sigma Fraternity; The Random Walk Revisited; A New Investment Paradigm; The Quant Meltdown Of August 2007 Andrew W. Lo ; With A New Afterword By The Author. Includes Bibliographical References And Index. Electronic Reproduction. Baltimore, Md Available Via World Wide Web.