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MARTIN: So I remember when I came home from elementary school one day, and my dad who was an electrical engineer, he used to design fuel gauges on airplanes, came home with this huge box. We’ve recently upgraded our systems to our next generation matching engine technology. Bob Bragg is my audio engineer. MARTIN: Exactly.
ANAT ADMATI, PROFESSOR OF FIANCE AND ECONOMICS, STANFORD GRADUATE SCHOOL OF BUSINESS: So, my journey starts where I took a lot of math. I was good in math and I love the math. So, I was kind of, in my romantic mind when I was in my early 20s, I was going to take but not give back to math, that kind of thing.
00:03:14 [Mike Greene] So that was actually an outgrowth from my experience coming out of Wharton and you mentioned the, the, you know, the transition of people who tended to be skilled at math or physics into finance. We ended up buying, this is one of the wonderful things about financialmarkets and degrees of completeness.
So like a component of it was like the standard derivatives math, right? And so like, you know, I got there and I learned derivatives math, right? It was derivatives math, it was like working with the traders on like risk management. My audio engineer is Meredith Frank. It will be everywhere in 2024.
First of all, I think the amount of investors that participate in the financialmarkets is much smaller than it is in the U.S. And I think that the financial advisors are used, but not as widely used as they are in the U.S. And definitely, their retail market participation is significantly lower than you can see in the U.S.
I didn’t think I would be necessarily doing what I’m doing today, but I knew that I was gonna be interested in financialmarkets of some kind, and I think I probably ended up in the right place. So that’s the math. John Wasserman is my audio engineer. So I, I went to school. Sean Russo is my researcher.
And so, I write about it both — I do know, the simple maths about it how you can double shop ratios for uncorrelated strategies and then remind that it’s really difficult to find for uncorrelated strategies in long-only world. Justin Milner is my audio engineer. RITHOLTZ: Right. That makes a lot of sense. RITHOLTZ: Right.
Because he was all sure he was a totally isolated math. So, so he’s brilliant at math. He goes to m i t to study, study physics and math. So brilliant enough so that sure, he goes to math camp in the summer and find, kind of finds his tribe. But in math camp, he’s not the best. And the Undoing project.
I’m kind of in intrigued by the idea of philosophy and math. 00:01:58 [Savita Subramanian] Well, I started out as an electrical engineering computer science major. 00:03:00 [Speaker Changed] I read a quote from you way back when you said your parents were pushing you to be either an engineer or a doctor. Is this true?
Undergraduate applied mathematics, master’s degree in financialengineering, a little bit of, of teaching. So how Barry Ritholtz : Do you go from a PhD program to financialengineering masters? They ended up going back to a school in LA called Claremont, and they had a financialengineering program there.
So as much as I’m personally still a pretty strong skeptic of active management, I mean, I understand the math, and the odds are not in your favor. I read all those academic papers, I understand where the math comes from. It’s how math works. Sarah Livesey is my audio engineer. RITHOLTZ: Right. NADIG: Right.
You, you get your BS in engineering from University of Texas. 00:04:22 [Speaker Changed] Think of that, 00:04:23 [Speaker Changed] So engineers tend to be pragmatic problem solvers. I’d been ranked i i back in the seventies, if you can do the math. Sebastian Escobar is my audio engineer. Anna Luke is my producer.
And I did a lot of options math, which I thought was interesting. ’cause these are companies and in some cases countries that were never really fully integrated into the global financial system. And so as the global financialmarkets were in a tailspin, they were actually very resilient. Makes sense.
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