jsteinhardt comments on Mathematicians and the Prevention of Recessions - Less Wrong

8 Post author: JonahSinick 25 May 2013 04:12AM

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Comment author: jsteinhardt 29 May 2013 05:03:57PM 0 points [-]

That seems a little extreme; presumably there's a difference between using statistical tests as a heuristic you don't understand, and using statistical tests in a well-understood way, even if you're not deriving finance from first principles.

Also, CAPM isn't actually true (i.e. assumptions never hold in the real world), whereas statistics is.