A must read case study for all finance students

I had posted about an article by Dean Foster a while ago where he talks about regulating hedge funds.  On seeing his website I came across this gem of a paper which is actually an experiment all finance students should undergo.

It is titled “Being Warren Buffet” and is based on the dice game most students take in a finance course. The paper explains the importance of variance while looking at returns (which is often forgotten by most).

I can go on and explain the paper but that would take huge time. It is better if people simply download the paper and read it.


One Response to “A must read case study for all finance students”

  1. Can we limit hedge fund managers’ salaries? « Mostly Economics Says:

    […]  I came across this excellent paper from Dean Foster and Peyton Young . Foster is a Statistics prof from Wharton and has taken a lot of interest in finance especially to show that it is not skill but good luck that leads to huge returns. I have pointed out to his superb paper on the same here […]

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