The Trinity Of Financial Modeling Errors

medium.com

Errors in analysis and forecasting may arise from any of the following modeling issues: using an inappropriate functional form, inputting inaccurate parameters, or failing to adapt to structural changes in the market.

Excellent post. Short, correct, and somehow still contrarian even after 2008 clearly demonstrated the problems with much of "traditional" modeling done in finance. Finance textbooks still have not been rewritten.

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