The adaptive markets hypothesis : an evolutionary approach to understanding financial system dynamics /

This book presents a formal and systematic exposition of a new narrative about financial markets that reconciles rational investor behaviour with periods of temporary financial insanity. In this narrative, intelligent (but fallible) investors learn from and adapt to randomly shifting environments. F...

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Bibliographic Details
Main Authors: Lo, Andrew W. (Andrew Wen-Chuan) (Author), Zhang, Ruixun (Author)
Format: eBook
Language:English
Published: Oxford : Oxford University Press, [2024]
Series:Clarendon lectures in finance.
Subjects:
Online Access:Connect to the full text of this electronic book
Description
Summary:This book presents a formal and systematic exposition of a new narrative about financial markets that reconciles rational investor behaviour with periods of temporary financial insanity. In this narrative, intelligent (but fallible) investors learn from and adapt to randomly shifting environments. Financial markets may not always be efficient, but they are highly competitive, innovative, and adaptive, varying in their degree of efficiency as investor populations and the financial landscape change over time. The authors have developed the mathematical foundations of the adaptive markets hypothesis (AMH) - a simple yet surprisingly powerful set of evolutionary models of behaviour - and then apply these foundations to show how the most fundamental economic behaviours that we take for granted can arise solely through natural selection.
Item Description:Also issued in print: 2024.
Physical Description:1 online resource (xxx, 765 pages) : illustrations
Audience:Specialized.
Bibliography:Includes bibliographical references (pages [701]-748) and index.
ISBN:9780191767289
019176728X
9780192885692
0192885693