The Misbehavior of Markets: A Fractal View of Financial Turbulence

by Benoît B. Mandelbrot

Bachelier

Black-Scholes:

Three states of matter—solid, liquid, and gas—have long been known. An analogous distinction between three states of randomness—mild, slow, and wild—arises from the mathematics of fractal geometry.

Conventional financial theory

What fractals show, and this book describes,

A more accurate, multifractal model of wild price variation paves the way for a new, more reliable type of financial theory.

INDEPENDENCE IS A GREAT VIRTUE.

inmates

So he set off by himself.

“the way my father behaved throughout his life. He was an independent man—and so am I.”

He invented a new branch of mathematics, fractal geometry; he applied it to dozens of improbably diverse fields; and he received numerous awards and much media attention.

he has touched: statistical physics, cosmology, meteorology, hydrology, geomorphology, anatomy, taxonomy, neurology, linguistics, information technology, computer graphics, and, of course, mathematics.

So this book is an end-run, to a broader world and a broader audience than can be found in the faculty lounges of Cambridge, Massachusetts, or Cambridge, England.

What Mandelbrot has to say is important and immediately relevant to every professional in finance, every investor in the market, anyone who just wants to understand how money gets won and lost with such frightening rapidity.

The ideas of this book used to nbe discusses very hard in the past by economic establishment . Now it officially publiced by this book to broader world. This sentence indicate whom need to comcern.

Roughness is in the jagged edge of a metal fracture, the rugged coastline of Britain, the static on a phone line, the gusts of the wind—even the irregular charts of a stock index or exchange rate.

Roughness is everywhere

His manifesto, The Fractal Geometry of Nature, appeared in 1982 and became a scientific bestseller.