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Physics & finance


TO THE EDITOR:

Jeremy Bernstein's "The Einsteins of Wall Street" [September] gives a dramatic account of the mismatch between the theories of quantitative finance and the achievements of those theories in practice. My work My Life as a Quant, which Mr Bernstein leaves to, was written in part to explain the limited (but not negligible) efficacy of the techniques of theoretical physics in finance.

When I started working upon Wall Street twenty years ago after a career as a theoretical physicist, I simply assumed it made faculty of perception to apply the techniques of physics to financial modeling. wherefore should differential ...


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