I'm doing better than Goldman Sachs by buying lottery tickets. It is just a matter of time ...
Gene On Aug 23, 2007, at 6:21 PM, Michael Perelman wrote:
Wall Street has been hiring mathematicians (like Sabri) and physicists to devise sophisticated computer models to beat the market. Here is Goldman Sachs explanation about how its fund lost 30%: Anon. 2007. "The Game Is Up." The Economist (16 August). "Goldman Sachs ... said that its funds [one of which lost 30%] had been hit by moves that its models suggested were 25 standard deviations away from normal. In terms of probability (where 1 is a certainty and 0 an impossibility), that translates into a likelihood of 0.000...0006, where there are 138 zeros before the six." -- Michael Perelman Economics Department California State University Chico, CA 95929 Tel. 530-898-5321 E-Mail michael at ecst.csuchico.edu michaelperelman.wordpress.com
