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re: Taleb goes into self-imposed exile

Posted on 12/3/09 at 4:37 pm to
Posted by LSURussian
Member since Feb 2005
126971 posts
Posted on 12/3/09 at 4:37 pm to
From your link:
quote:

Finance professionals....seem to confuse mean absolute deviation with standard deviation, causing an underestimation of 25% with theoretical Gaussian variables.

Who could ever get confused by that!?!
Posted by tirebiter
7K R&G chile land aka SF
Member since Oct 2006
9295 posts
Posted on 12/3/09 at 4:42 pm to
Certainly not a layman.

It ties into your VaR post quite nicely I might add.
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