Modern portfolio theory (MPT) is a theory of finance that attempts to maximize portfolio expected return for a given amount of portfolio risk, or equivalently minimize risk for a given level of expected return, by carefully choosing the proportions of various assets. Although MPT is widely used in practice in the financial industry and several of its creators won a Nobel memorial prize for the theory, in recent years the basic assumptions of MPT have been widely challenged by fields such as behavioral economics.
MPT is a mathematical formulation of the concept of diversification in investing, with the aim of selecting a collection of investment assets that has collectively lower risk than any individual asset. This is possible, intuitively speaking, because different types of assets often change in value in opposite ways. For example, to the extent prices in the stock market move differently from prices in the bond market, a collection of both types of assets can in theory face lower overall risk than either individually. But diversification lowers risk even if assets' returns are not negatively correlated—indeed, even if they are positively correlated.
I am writing a series of blog posts related to the integration of technology in the classroom. Each blog post will include practical examples of how to use a specific tool and integrate it into you...
We are living in revolutionary times. It is urgent that we think of education, children and teaching differently from the past. The classroom needs to be a place of innovation where students are able to connect with others, feel empowered and curious and have a say in their learning. Technology provides us with tools to expand our minds and extend our reach (Sir Ken Robinson, 2014).
In contrast to entropy, which increases monotonically, the "complexity" or "interestingness" of closed systems seems intuitively to increase at first and then decrease as equilibrium is approached. For example, our universe lacked complex structures at the Big Bang and will also lack them after black holes evaporate and particles are dispersed. This paper makes an initial attempt to quantify this pattern. As a model system, we use a simple, two-dimensional cellular automaton that simulates the mixing of two liquids ("coffee" and "cream"). A plausible complexity measure is then the Kolmogorov complexity of a coarse-grained approximation of the automaton's state, which we dub the "apparent complexity." We study this complexity measure, and show analytically that it never becomes large when the liquid particles are non-interacting. By contrast, when the particles do interact, we give numerical evidence that the complexity reaches a maximum comparable to the "coffee cup's" horizontal dimension. We raise the problem of proving this behavior analytically.
Quantifying the Rise and Fall of Complexity in Closed Systems: The Coffee Automaton Scott Aaronson, Sean M. Carroll, Lauren Ouellette
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Tranformative Use of iPads in the Education: Pedagogy, Examples, Activities (Tranformative Use of iPads in Education: Pedagogy, Examples, Activities http://t.co/qPCwUSJkvV @debraprinc @B1Brie #sctechhubs...
Pessoas com poucas capacidades não conseguirão realmente assimilar com facilidade uma língua estrangeira: embora aprendam as suas palavras, empregam-nas apenas no significado do equivalente aproximad...
The Center for Complex Networks and Systems Research (CNetS.indiana.edu) at Indiana University, Bloomington has an open postdoctoral position to study how ideas propagate through complex online social networks. The position is funded by a McDonnell Foundation's grant in Complex Systems (www.jsmf.org/grants/2011022/). The appointment starts as early as possible after January 2013 for one year and is renewable for up to 2 additional years. The salary is competitive and benefits are generous.
The postdoc will join a dynamic and interdisciplinary team that includes computer, physical, and cognitive scientists. The postdoc will work with PIs Filippo Menczer and Alessandro Flammini, other postdocs, and several PhD students on analysis and modeling of social media data. Areas of focus will include information diffusion patterns, epidemic models for the spread of ideas, interactions between network traffic and structure dynamics, and agent-based models to explain the emergence of viral bursts of attention. Domains of study will include politics, scientific knowledge, and world events. Go to the grant page or cnets.indiana.edu/groups/nan/truthy for further details on the team and project.
The ideal candidate will have a PhD in computing or physical sciences; a strong background in analysis and modeling of complex systems and networks; and solid programming skills necessary to handle big data and develop large scale simulations.
To apply, send a CV and names and emails of three references by email toor by mail to CNetS, 919 E 10th Street, Bloomington, IN 47408, USA. Applications received by 15 December 2012 will receive full consideration, but applications will be considered until the position is filled.
Indiana University is an Equal Opportunity/Affirmative Action employer. Applications from women and minorities are strongly encouraged. IU Bloomington is vitally interested in the needs of Dual Career couples.
In financial economics, the earnings response coefficient, or ERC, is the estimated relationship between equity returns and the unexpected portion of (i.e., new information in) companies' earnings announcements.
Arbitrage pricing theory describes the theoretical relationship between information that is known to market participants about a particular equity (e.g., a common stock share of a particular company) and the price of that equity. Under the efficient market hypothesis, equity prices are expected in the aggregate to reflect all relevant information at a given time. Market participants with superior information are expected to exploit that information until share prices have effectively impounded the information. Therefore, in the aggregate, a portion of changes in a company's share price is expected to result from changes in the relevant information available to the market. The ERC is an estimate of the change in a company's stock price due to the information provided in a company's earnings announcement.
Sir Ken Robinson outlines 3 principles crucial for the human mind to flourish -- and how current education culture works against them. In a funny, stirring talk he tells us how to get out of the educational "death valley" we now face, and how to nurture our youngest generations with a climate of possibility.
Instructor: Melanie Mitchell Launch date: January 28, 2013 Prerequisites: None Cost: Free Credit offered: None, though everyone who successfully finishes the course will receive a certificate of completion from the Santa Fe Institute. Course length: 11 weeks Approximate workload: 3-6 hours per week