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Four Points Beginner Risk Managers Should Learn from Jeff Holman's Mistakes in the Discussion of Antifragile

General Finance 2014-01-14 v1 Risk Management

Abstract

Using Jeff Holman's comments in Quantitative Finance to illustrate 4 critical errors students should learn to avoid: 1) Mistaking tails (4th moment) for volatility (2nd moment), 2) Missing Jensen's Inequality, 3) Analyzing the hedging wihout the underlying, 4) The necessity of a numeraire in finance.

Keywords

Cite

@article{arxiv.1401.2524,
  title  = {Four Points Beginner Risk Managers Should Learn from Jeff Holman's Mistakes in the Discussion of Antifragile},
  author = {Nassim Nicholas Taleb},
  journal= {arXiv preprint arXiv:1401.2524},
  year   = {2014}
}