I like to think in Goethean terms of what we do in quantitative finance. We try to make as beautiful and truthful a description as we can of what we observe. We’re involved in intuiting [i.e., sensing], inventing, or concocting approximate laws and patterns. We combine both art and science in creating understanding. We use our intuition, our scientific knowledge and our pedagogical skills to paint a picture of how to think qualitatively, and then within limits, quantitatively, about the world of human affairs, and in so doing, we influence and are influenced by other people’s thoughts.Reference: Derman, E (2004). My Life as a Quant: Reflections on Physics and Finance. Hoboken, NJ: John Wiley.
Tuesday, January 19, 2010
The Beauty of Finance
Here's a quote by Prof Emanuel Derman (2004, p. 270) that every financial analyst can take to heart:
Posted by William McKibbin