A Mathematician Plays The Stock Market [Paperback]

InA Mathematician Plays the Stock Marketbest-selling author John Allen Paulos demonstrates what the tools of mathematics can tell us about the vagaries of the stock market. Employing his trademark stories, vignettes, paradoxes, and puzzles (and even a film treatment), Paulos addresses every thinking reader's curiosity about the market: Is it efficient? Is it rational? Is there anything to technical analysis, fundamental analysis, and other supposedly time-tested methods of picking stocks? How can one quantify risk? What are the most common scams? What light do fractals, network theory, and common psychological foibles shed on investor behavior? Are there any approaches to investing that truly outperform the major indexes? Can a deeper knowledge of mathematics help beat the odds?All of these questions are explored with the engaging erudition that made Paulos'sA Mathematician Reads the NewspaperandInnumeracyfavorites with both armchair mathematicians and readers who want to think like them. Paulos also shares the cautionary tale of his own long and disastrous love affair with WorldCom. In the tradition of Burton Malkiel'sA Random Walk Down Wall Streetand Jeremy Siegel'sStocks for the Long Run, this wry and illuminating book is for anyone, investor or not, who follows the markets-or knows someone who does.

John Allen Paulosreceived his Ph.D. in mathematics from the University of Wisconsin and is professor of mathematics at Temple University. Dr. Paulos has written a number of scholarly papers on mathematical logic, probability, and the philosophy of science. He is also the authorof Innumeracy: Mathematical Illiteracy and Its Consequences, Beyond Numeracy: Ruminations of a Numbers Man,Mathematics and Humor, andA Mathematician Reads the Newspaper. He lives in Philadelphia with his wife and two children.