Misbehavior of Markets

Front Cover
Basic Books, 2004 - Business & Economics - 328 pages
32 Reviews
Mathematical 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 dollar-Euro exchange rate--Mandelbrot 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  - Maury - Goodreads

Mandelbrot's criticism of modern financial orthodoxy, developed over many years, is devastating. After reading his lucid explanations, one wonders how financial markets can persist in collective ... Read full review

Review: The (Mis)Behavior of Markets

User Review  - Katherine Collins - Goodreads

I only met Prof. Mandelbrot once, at a Santa Fe Institute/CSFB conference, and I remember being astounded that he could explain decades of groundbreaking and highly technical work in just three words ... Read full review

All 7 reviews »

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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
Bibliography
303

Studies in Roughness A Fractal Primer
123
A Fractal Gallery
132
The Mystery of Cotton
147

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Mandelbrot's "The (Mis)Behavior of Markets" - Charles Carreon's ...
Navigation. Video Rage · Political Rage · Media Rage · Legal Rage · Planetary Rage · Economic Rage · Musical Rage · Literary Rage · Fictional Rage...
www.ragingblog.com/ Political_Rage/ Mandelbrots_quotThe_MisBehavior_of_Marketsquot

researchchannel - The (Mis)Behavior of Markets: A Fractal View of ...
The (Mis)Behavior of Markets: A Fractal View of Risk, Ruin and Return. Produced by: Microsoft Research August 23, 2004. Description: ...
www.researchchannel.org/ prog/ displayseries.aspx?fID=1894

The Ashland Chronicles: The (mis)Behavior of Markets
I started reading The (mis)Behavior of Markets by Benoit Mandelbrot. I will do a chapter by chapter recap of things I find interesting. Chapter 1: ...
jeffgendron.blogspot.com/ 2008/ 03/ misbehavior-of-markets.html

Julian's Jabberings: The (mis)Behavior of Markets
The (mis)Behavior of Markets: A Fractal View of Risk, Ruin, and Reward presents a non-conventional way of understanding the stock market and other financial ...
www.mindspring.com/ ~teleri/ julian/ 2005/ 02/ misbehavior-of-markets.html

Harnessing the (mis)Behavior of Markets
Harnessing the (mis)Behavior of Markets: Brownian Motion and Stock Prices by Rick Martinelli, ma Haiku Laboratories Technical Memorandum 060301 ...
www.haikulabs.com/ HMB_15.htm

The (Mis)behavior of Markets — Summary | getabstract
Download the five-page summary of The (Mis)behavior of Markets by Benoit B. Mandelbrot and Richard L. Hudson (Basic Books, 2004). A Fractal View of Risk, ...
www.getabstract.com/ ShowAbstract.do;jsessionid=1FHXrFzYiifPr1gY?dataId=4023

Ars Mathematica » Blog Archive » The (Mis)Behavior of Markets
June 8th, 2005 by Walt. Michael of comment board fame had lent me Benoit Mandelbrot and Richard Hudson’s The (Mis)Behavior of Markets a while ago, ...
www.arsmathematica.net/ archives/ 2005/ 06/ 08/ the-misbehavior-of-markets/

More Non-Stochastic Reading « BRAIN DRAIN
The second book thrown my way was Benoit Mandelbrot’s The (Mis)Behavior of Markets: A Fractal View of Risk, Return and Reward. Co-authored with journalist ...
brianbelen.wordpress.com/ 2007/ 10/ 10/ more-non-stochastic-reading/

Yale Scientific Magazine
The (mis)Behavior of Markets: A Fractal View of Risk, Ruin, and Reward By Benoit Mandelbrot and Richard L. Hudson Basic Books, 2004, 328 pp. ...
research.yale.edu/ ysm/ article.jsp?articleID=436& printable=1

Elegant Report
totalportfoliomanagem ent , llc. independence , diversification , discipline. fi NA ncialmarketscommen TA RY. mark F. toledo , cfa. FEBRUARY 3, 2006 ...
www.totalpm.net/ uploads/ -Mis__Behavior_020306.pdf

About the author (2004)

Benoit B. Mandelbrot is Sterling Professor of Mathematical Sciences at Yale University and a Fellow Emeritus at IBM's Thomas J. Watson Laboratory. He is the inventor of fractal geometry, whose most famous example, the Mandelbrot Set, has been replicated on millions of posters, T-shirts, and record albums. He was a leading figure in James Gleick's Chaos and has received the Wolf Prize in Physics, the Japan Prize in science and technology, and awards from the U.S. National Academy of Sciences, the IEEE, and numerous universities in the U.S. and abroad. His books include Fractals: Form, Chance and Dimension, which was later expanded into the classic The Fractal Geometry of Nature, which has sold more than 200,000 copies. This is his first book for lay readers on finance, a subject he has studied since the 1960s. He lives in Scarsdale, New York. Richard L. Hudson was the managing editor of the Wall Street Journal's European edition for six years, and a Journal reporter and editor for twenty-five years. He is a 1978 graduate of Harvard University and a 1991 Knight Fellow of MIT. He lives in Brussels, Belgium.

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