Work

The complexity of the stock market

Year: 1989

Type: article

Abstract: The stock market is a complex system, somewhere between the domains of order and randomness. Ordered systems are simple and predictable, and random systems are inherently unpredictable. Simple theories do not adequately describe security pricing, nor is pricing random. Rather, the market is permeated by a web of interrelated return effects. Substantial computational power is needed to disentangle, model, and exploit these return regularities.

Source: The Journal of Portfolio Management

DOI: 10.3905/jpm.1989.409244

Authors: Bruce I. Jacobs, Kenneth N. Levy

Institution: Jacobs Levy Equity Management

Language: English

Topic: Financial Markets and Investment Strategies

Subfield: Finance

Field: Economics, Econometrics and Finance

Domain: Social Sciences

Open Access status: green

OpenAlex ID: W2047267926

FWCI: 1.953

Cites:

Cited by: 35

Related to: 10