Richard L. Hudson Books
Hudson is a former Wall Street Journal editor and science writer who collaborated with Mandelbrot to make complex mathematical ideas accessible to a general audience.
Known for: The Misbehavior of Markets: A Fractal View of Financial Turbulence
Books by Richard L. Hudson
The Misbehavior of Markets: A Fractal View of Financial Turbulence
In this groundbreaking work, mathematician Benoit Mandelbrot and science journalist Richard L. Hudson challenge the traditional assumptions of financial theory. They argue that markets are far more turbulent and unpredictable than classical models suggest, and that fractal geometry provides a more accurate framework for understanding financial behavior. The book explores how fractal patterns can explain market volatility, risk, and the limits of prediction in economics.
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The Classical View
The foundations of modern financial theory were built on an idealized vision of randomness. Louis Bachelier, in 1900, proposed that price changes follow a random walk—a mathematical model similar to the diffusion of particles. Later, this idea evolved through Markowitz’s portfolio theory, Sharpe’s c...
From The Misbehavior of Markets: A Fractal View of Financial Turbulence
Empirical Anomalies
When we turn from theory to data, the anomalies reveal themselves starkly. If returns were truly Gaussian, then large deviations would be exceedingly rare. Yet, in every major market—stocks, commodities, foreign exchange—the tails of the distribution are fat. In simple terms, extreme changes happen ...
From The Misbehavior of Markets: A Fractal View of Financial Turbulence
About Richard L. Hudson
Hudson is a former Wall Street Journal editor and science writer who collaborated with Mandelbrot to make complex mathematical ideas accessible to a general audience.
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Hudson is a former Wall Street Journal editor and science writer who collaborated with Mandelbrot to make complex mathematical ideas accessible to a general audience.
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