Bankers should have noted that very small changes in their underlying assumptions could result in very large changes in the correlation number.Isn't this the technical definition of Chaos - assumptions being the butterfly and correlation numbers being the hurricanes?
Felix Salmon - Wired magizine
Showing posts with label Chaos Theory. Show all posts
Showing posts with label Chaos Theory. Show all posts
Thursday, February 26, 2009
Hubris Watch II
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