A note on Quantitative Finance and Investment.

There are many vague ideas in finance. Always ask how precise a claim is. What looks like mysticism often reflects incomplete reasoning—so keep asking why.

TODO:

• Risk Return Ratio.
• Uncorrelated Return Stream. (Uncorrelated Assets) (Correlation Regime Change)
• What do we mean when we say - variable x (Price of a Stock) contains information?
  • Predictive Power
  • Reduction of Uncertainty
  • Signal Relevant to Decision-Making
• How do large firms behave?
• How do large firms gain informational advantages, and how does internal information leak?
• What incentives make insider trading a common or normalized practice?
• Which are the unfair advanced that exists in financial markets?
• How does owning a large stake in a company change the type of access or information a firm receives?
• Can a firm of this size realistically compete without leveraging every possible edge, including subtle informational advantages?
• What types of non-public or indirect information can large investors access?
• How do indirect signals — tone, emphasis, or informal hints — affect decision-making for insiders?
• Can regulators effectively monitor or prevent the use of these “soft” informational advantages?

Index

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