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Politics : Ask Michael Burke -- Ignore unavailable to you. Want to Upgrade?

To: Knighty Tin who wrote (55050)	4/7/1999 6:08:00 PM
From: Michael Bakunin	Read Replies (1) \| Respond to of 132070

What about Keynes? I thought he was a famously successful speculator. -mb

To: Knighty Tin who wrote (55050)	4/7/1999 6:29:00 PM
From: re3	Read Replies (1) \| Respond to of 132070

Michael, when I was in uni, bonds were paying 16-17 % One doe eyed student asked if a phd in finance helped the professor in the market...He said, yeah, it helps me understand why I lost money... Howard

To: Knighty Tin who wrote (55050)	4/7/1999 9:31:00 PM
From: Skeeter Bug	Read Replies (1) \| Respond to of 132070

>>3. The Finance Dept. at Wharton, which mismanaged the money in the Penn endowment until the alumni screamed for their heads. Of course, they were also fine tuning MPT while losing the money.<< ho ho ho ho. mike, the knowledge gap here is obvious. one person takes personal responsibility for their belief system, continuously tests it against reality, continuously learns new things and lives an exciting life. the other sits back, takes no responsibility for anything and refers others to other people for the ultimate authority is his life. some people can't make up their own minds nor do they trust themselves. they live life relying on others. those types are risk averse. there can be no balance.

To: Knighty Tin who wrote (55050)	4/7/1999 10:22:00 PM
From: BGR	Read Replies (1) \| Respond to of 132070

Michael, That's a red herring and you know it. MPT never claims that academicians trade better than fund managers. According to MPT, trading performance of academicians on the average over the long term is supposed to be no better than the market when adjusted for risk. That, precisely, has been the case. So, how does that invalidate MPT? To give an analogy, if you personal physician - while warning you against the dangers to cancer caused by smoking - nevertheless remains a chain smoker and dies to lung cancer, does that validate or invalidate his warning? As for financial academics successfully advicing fund managers, sure. Any fund manager who took the advice from the teachings of MPT and invested in the appropriate index performed relatively well in a percentile scale (80%+ last year) over the years. -BGR.