Measuring Risk: Utility Functions by Daniel Bernoulli
Background on these posts Apart from reading books I think we must read Journal Papers. Now there is a problem in doing so - it's complicated, right? Yes they are and I feel they are made to be so deliberately as the end audience is not the common man but rather a specialist. I have read quite a few over the years, some I understood pretty well and some very minimally given my limited mathematical abilities. But in going through these papers I always could derive the essential takeaway - the crux. Also one problem I saw was application. I don't see how all these papers could be applied be it in actual trading or in developing some heuristic for our investing endeavour. Therefore I thought over time I will start doing the following 3 things: Crux : Summarise key points in some 'good' papers in plain english Simplify : Remove math formulas from the papers as much as possible Actionable : Share my ideas on application of the concepts in that paper Sometimes will throw in ...