The (mis)behavior of markets

In 'The (Mis)Behavior of Markets', Benoît Mandelbrot and Richard L. Hudson challenge conventional financial theories by applying fractal geometry to market dynamics.

They argue that markets exhibit complex patterns and extreme events more frequently than traditional models predict, highlighting the importance of recognizing these patterns for better risk management.

The book critiques the efficient market hypothesis and modern portfolio theory, advocating for a more nuanced approach to financial markets.