Epstein Secrets

advertising executive Donny Deutsch; investor Nelson Peitz; publishing guru Mortimer Zuckerman; and the famous Hollywood producer and distributor, Harvey Weinstein. They were outbid, in the end, by Bruce Wasserstein, a long-time Wall Street investor. A year later in 2004, Epstein and Zuckerman collaborated on

amous Hollywood producer and distributor, Harvey Weinstein. They were outbid, in the end, by Bruce Wasserst

d the famous Hollywood producer and distributor, Harvey Weinstein. They were outbid, in the end, by Bruc

n to publish a paper, expanding the mathematical understanding of this model and coining the "Black-Scholes" title, was Robert C. Merton. Merton and Scholes won the Nobel Prize for their work in 1997, in the field of Economics. Black, who died in 1995, was ineligible, but was mentioned favorably by the

have the advantage." Claude Shannon [Tribus & Mclrvine 1971]. I find the last quote very reassuring. In my own opinion, though less well known than Einstein, Von Neumann ranked close to Einstein in terms of genius. Like Einstein, he didn't merely bring in a single profound new idea; but seemed to change

st is in that of finance. The earliest work on random walks was that done by the mathematician Bachelier on stock prices. Bachelier's work predates Einstein's own random walk model of Brownian motion. For half a century Bachelier's work was largely forgotten. The use of random walks in finance was rekin

work was largely forgotten. The use of random walks in finance was rekindled and ultimately led to the option pricing formulae of Merton, Black and Scholes. Unfortunately the random walk process has been removed from it's many body background, and individual prices are treated as moving randomly isolat

ke this naïve approach as it stands and follow the consequences through the model. With regard to management behaviour, research from Bray, Graham, Harvey and Michaely [Bray et al 2005] support the contention that maintenance of a constant dividend stream is an important priority for managers of corpo

who is able to model bubbles with a degree of precision. The use of statistical mechanics in economics is even more frustrating. Merton, Black and Scholes cherry-picked the diffusion equation from thermodynamics while completely ignoring its statistical mechanical roots and derivation. They then sledge