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Summary of Harry M. Markowitz's Risk-Return Analysis, Volume 3, EPUB eBook

Summary of Harry M. Markowitz's Risk-Return Analysis, Volume 3 EPUB

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Please note: This is a companion version & not the original book.

Book Preview: #1 The central questions for the present volume are: A. By what principles would an RDM go from information to investment and other game-of-life decisions. B. How can HDMs and their DSSs apply these principles, at least approximately.

#2 The questions of whether to become a philosopher, a mathematician, or a scientist are all questions with which great minds have struggled for centuries. I began reading philosophy when I was in high school, long before I developed portfolio theory.

#3 The first two questions in the Introduction to this chapter are: What kinds of things can we know. and How are we to come by this knowledge. I recommend that you do a Descartes-like exercise and consider the things you may doubt.

#4 If we seek certainty, we must ignore sense experience. The senses have sometimes lied to us, and we can’t trust a witness who sometimes does not tell the truth. Descartes distrusts memory as well, since he doesn’t trust the sense impressions before him now.

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