A
suggestion for students seeking an MBA .
You
probably have seen Earl J. Weinreb comments on this subject many
times in the past. They’re the result of my observing the
successes, failures and foibles I have noted on Wall Street.
One
has to do with the study of failures of the many mathematical models
that have been devised to reduce risk. The models have not cut
investment risk that is their primary objective.
I
am not talking about the well-discussed Black Swan concept of risk
that happens once every fifty years or so. Concerning events such
as the recent financial meltdown. But they regard the constant use
of financial models which don’t seem to work as they are intended
to do.
The
truth is, some complex models by MBAs work but they are destined to
eventually fail, no matter the brain-power and effort applied. (See
the Earl J. Weinreb NewsHole® comments and @BusinessNewshole
tweets.)
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