Message Font: Serif | Sans-Serif Author: solasis Big red star,
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Subject: Re: MPT and Efficient Frontier Date: 3/23/2000 12:59 PM
Recommendations: 0 MPT is bunk.  first off, MPT relies on linear
mathematics and normal or Gaussian statistics. i don't care what
aspect of the market you look at, market behavior does not fit
simple Gaussian assumptions. MPT assumes that prices change in a
random walk - that is also not true as the market is complex
adaptive. on one extreme you have total order which is completly
predictable. at the other extreme you have choas, which is
completely unpredictable. in between lies complexity, and that
is where the market is at - it is neither chaotic nor ordered -
it is complex. like all complex systems it is partially
predictable but never completely predictable and that is what
turns market participants into mad hatters - the partial
predictability. the efficie