25. Ross Recovery Theorem

[@nobodysfool2232]

RIP Peter, such a legend

[@Boringpenguin]

RIP, definitely one of the GOAT in mathematical finance.

[@Boringpenguin]

1:01:36 In case anyone needs a refresher, Perron-Frobenius theorem was actually mentioned at the end of Lecture 2 ( kzbin.info/www/bejne/b4rXnnqvYtyZe5Y ), starting at 1:02:32.

[@richardklassen2115]

27:36.... SP500 < aggregate securitized value < total economic value

[@drdca8263]

Also, Woah! That is a surprising result! It seems like it may have some philosophical implications for the idea of collective beliefs and collective preferences? Wild! I had given up on the idea of there being such a thing as canonically defined collective preferences, but now I will have to reconsider that!

[@johngrey1074]

RIP Dr. Carr

[@lordstorm88]

cool! I never knew captain kirk retired from being a starfleet captain to becoming a quant

[@nobodysfool2232]

He kinda looks like Trudeau- except Peter is intelligent and makes sense

[@chadgregory9037]

No need to say more. I've made my point. And, save for the last word, have done so in prose of but one syllable.

[@user-or7ji5hv8y]

I wonder if he’s making it more complicated than needs to be to get to his point.

[@quistisa08]

Anyone interested in the topic should also listen to Ross' talk here: kzbin.info/www/bejne/hWeTqYqIf5WGbLM

[@drdca8263]

If a representative agent prefers to hold stock in proportion to the market caps of the different companies, uh, I was under the impression that that was actually a reasonable and common strategy, because, it should match the growth of the total market, and also, one doesn’t have to repeatedly make trades, because as the market caps shift, they will continue to hold them in proportion to the market caps? Is that not something that people do?

[@drdca8263]

Ah, ok, is based on assumption of a single thing driving the change? I’m not quite sure what that means, but it seems like a substantial restriction on the applicability? But perhaps not.

[@nothing_Jalal]

What is done at 40:00? What is those zig zag lines?

[@Boringpenguin]

Those should be just vertical lines and they represent the payoff of digital options at different strikes

[@souravmajumdar6646]

which book is mentioned at 21:56?

[@RC-bm9mf]

Fortune's Formula

[@brainstormingsharing1309]

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