My thoughts on and your responses to interesting topics in the Physical Sciences
Continuing our saga, trying to be intellectually honest, while a little prurient (Look It Up!, to adopt a recent political slogan), let’s look at the ridiculous “measured” correlation in point 3 of this public post. Let’s call it the PPP-GDP correlation! The scatter graph with data is displayed below Does it make sense? As in … Read More “p-‘s and q-‘s redux” »
I was listening to an academic talk and someone mentioned the “Rule of 72”. Apparently invented by Einstein, it is a simple numerical approximation that helps you understand the power of compound interest. This, according to legend, became popular when interest rates offered on deposits by the Swiss National Bank dropped to in the 1930s. … Read More “The Rule of 72 – and what does the Swiss National Bank have to do with it” »
Imagine you were walking around in Manhattan and you chanced upon an interesting game going on at the side of the road. By the way, when you see these games going on, a safe strategy is to walk on, since they usually reduce to methods of separating a lot of money from you in various … Read More “Master Traders and Bayes’ theorem” »
Arbitrage refers to a somewhat peculiar and rare situation in the financial world. It is succinctly described as follows. Suppose you start with an initial situation – let’s say you have some money in an ultra-safe bank that earns interest at a certain basic rate . Assume, also, that there is a infinitely liquid market … Read More “Arbitrage arguments in Finance and Physics” »
