Price-38 L.

Includes bibliographical references (p. [303]-317) and index.

Prelude : introducing a maverick in science : Benoit Mandelbrot, the "father" of fractals, has made a career of going against the prevailing fashions in science -- Ch. I. Risk, ruin, and reward -- Ch. II. By the toss of a coin or the flight of an arrow? -- Ch. III. Bachelier and his legacy -- Ch. IV. The house of modern finance -- Ch. V. The case against the modern theory of finance -- Pictorial essay : images of the abnormal -- Ch. VI. Turbulent markets : a preview -- Ch. VII. Studies in roughness : a fractal primer -- Pictorial essay : a fractal gallery -- Ch. VIII. The mystery of cotton -- Ch. IX. Long memory, from the Nile to the marketplace -- Ch. X. Noah, Joseph, and market bubbles -- Ch. XI. The multifractal nature of trading time -- Ch. XII. Ten heresies of finance -- Ch. XIII. In the lab.

"Together with Richard L. Hudson, Benoit Mandelbrot turns a fractal eye to the behavior of financial markets and overturns the "random walk" theory that is the underpinning of all contemporary financial analysis. Markets, we learn, are far riskier than we have wanted to believe." "The ability to simplify the complex has made Mandelbrot one of the century's most influential mathematicians. With his fractal models, the (mis)behavior of the world's markets - from the gyrations of IMB's stock price and the Dow, to cotton trading, and the dollar-Euro exchange rate - can be understood in more accurate terms than the tired theories of yesteryear." "The (Mis)Behavior of Markets is a reevaluation of the standard tools and models of modern financial theory. Mandelbrot's fresh insights explode the false assumptions that have caused millions of investors, traders, and managers to underestimate the real risk, of the market."--BOOK JACKET.