Monday, April 16, 2012

More Physics Envy

On the heels of a recent related link, comes this talk, in which Andrew Lo deliberates on what physics envy may have done to the dismal science (H/T Farnam Street). From the video:
In physics it takes 3 laws to explain 99% of the data. In finance it takes more than 99 laws to explain about 3%.
Interesting video, especially for those with some knowledge of both fields. Also check out the link (from the Farnam Street blog) to a paper (PDF) by the same title. 

1 comment:

noiln said...

Physics is most fundamental of all sciences and provides other branches of science, basic principles and fundamental laws. The study of physics involves investigating such things as the laws of motion, structure of space and time, the nature and type of force that hold different materials together, the interaction between different particles.