Data analytics offers little insight on complex problems

Peter Bossaerts | University of Melbourne | 23 August 2018 | 0.25 CE

We often think of investments as playing roulette, with "laws" that somehow can be discovered using statistics or machine learning. Yet many investment problems we face actually fall in a completely different category. Firm valuation, determining what to look for when predicting markets – even portfolio construction – are not statistical problems, but complex decision problems that are central ...