Summary of Harry M. Markowitz's Risk-Return Analysis, Volume 3

By IRB Media

Please note: This is a companion version & not the original book.

Book Preview: #1 The central questions for the present volume are: A. By what principles would an RDM go from information to investment and other game-of-life decisions. B. How can HDMs and their DSSs apply these principles, at least approximately.

#2 The questions of whether to become a philosopher, a mathematician, or a scientist are all questions with which great minds have struggled for centuries. I began reading philosophy when I was in high school, long before I developed portfolio theory.

#3 The first two questions in the Introduction to this chapter are: What kinds of things can we know. and How are we to come by this knowledge. I recommend that you do a Descartes-like exercise and consider the things you may doubt.

#4 If we seek certainty, we must ignore sense experience. The senses have sometimes lied to us, and we can’t trust a witness who sometimes does not tell the truth. Descartes distrusts memory as well, since he doesn’t trust the sense impressions before him now.

• Language: English
• Publisher: IRB Media
• Release date: Feb 15, 2022
• ISBN: 9781669347132

IRB Media

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Book preview

Insights on Harry M. Markowitz's RiskReturn Analysis Volume 3

Contents

Insights from Chapter 1

Insights from Chapter 2

Insights from Chapter 3

Insights from Chapter 4

Insights from Chapter 5

Insights from Chapter 6

Insights from Chapter 1

#1

The central questions for the present volume are: A. By what principles would an RDM go from information to investment and other game-of-life decisions. B. How can HDMs and their DSSs apply these principles, at least approximately.

#2

The questions of whether to become a philosopher, a mathematician, or a scientist are all questions with which great minds have struggled for centuries. I began reading philosophy when I was in high school, long before I developed portfolio theory.

#3

The first two questions in the Introduction to this chapter are: What kinds of things can we know. and How are we to come by this knowledge. I recommend that you do a Descartes-like exercise and consider the things you may doubt.

#4

If we seek certainty, we must ignore sense experience. The senses have sometimes lied to us, and we can’t trust a witness who sometimes does not tell the truth. Descartes distrusts memory as well, since he doesn’t trust the sense impressions before him now.

#5

Without memory, there can be neither observation nor thought. The so-called perception of the moment is actually a combination of short-term memory and a prediction of the near future.

#6

The perception of the world at a literal instant often includes a forecast of the near future as well as a memory of the recent past. For example, when writing the letter o, our mind remembers how our pen will continue beyond the apex of the letter.

#7

Working hypotheses are the foundation of our actions everyday. We live