Misbehavior of MarketsMathematical superstar and inventor of fractal geometry, Benoit Mandelbrot, has spent the past forty years studying the underlying mathematics of space and natural patterns. What many of his followers don't realize is that he has also been watching patterns of market change. In The (Mis)Behavior of Markets, Mandelbrot joins with science journalist and former Wall Street Journal editor Richard L. Hudson to reveal what a fractal view of the world of finance looks like. The result is a revolutionary reevaluation of the standard tools and models of modern financial theory. Markets, we learn, are far riskier than we have wanted to believe. From the gyrations of IBM's stock price and the Dow, to cotton trading, and the dollarEuro exchange rateMandelbrot shows that the world of finance can be understood in more accurate, and volatile, terms than the tired theories of yesteryear.The ability to simplify the complex has made Mandelbrot one of the century's most influential mathematicians. With The (Mis)Behavior of Markets, he puts the tools of higher mathematics into the hands of every person involved with markets, from financial analysts to economists to 401(k) holders. Markets will never be seen as "safe bets" again. 
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Review: The (Mis)Behavior of Markets
User Review  Vivek  GoodreadsThis book will convince you once for all what many suspect. That contemporary economists and financiers are clueless when it comes to understanding how the markets work. The emperors new clothes have ... Read full review
Review: The (Mis)Behavior of Markets
User Review  Thomas Coppens  GoodreadsAbsolutely stunning. I was expecting a difficult reading packed with formulas. Nothing like that. Mandelbrot's genius is explaining (his) very powerful ideas such as fractals in a very simple way for everyone. Read full review
Contents
Risk Ruin and Reward  3 
By the the Toss of a Coin or the Flight of an Arrow?  25 
Bachelier and His Legacy  43 
The House of Modern Finance  59 
The Case Against the Modern Theory of Finance  79 
Images of the Abnormal  88 
The New Way  109 
Turbulent Markets A Preview  111 
Long Memory from the Nile to the Marketplace  173 
Noah Joseph and Market Bubbles  197 
The Multifractal Nature of Trading Time  207 
The Way Ahead  223 
Ten Heresies of Finance  225 
In the Lab  253 
Notes  277 
303  
Common terms and phrases
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