The Quantum Stock Market And the Road Not Taken in Finance

The Quantum Stock Market And the Road Not Taken in Finance | 18.76 MB

Title: The Quantum Stock Market And the Road Not Taken in Finance
Author: David Orrell
Category: Finance, Theory of Economics, Computer Science
Language: English | 187 Pages | ISBN: 9780262056007

A new paradigm based on quantum probability that can model stock markets and price options-and also upends classical quantitative finance.
In The Quantum Stock Market, David Orrell combines theory and new empirical findings to argue for a new approach to finance based on quantum probability. The main finding, a property called q-variance, may be unique in finance in that it was discovered as the result of a prediction, affects financial markets in general, has no tunable parameter, and has important consequences for a range of topics including the pricing of financial options. The property, which somehow eluded detection for over a century, has been verified by experts in the field. And the fact that it is incompatible with classical finance-which is perhaps why it went undetected-suggests that the field must be reinvented.
Orrell argues for nothing less than a paradigm shift in finance. As with any new work that challenges existing methods…