Robert Merton

Every investor – even the world's most prominent and respected investors – are subject to the foibles of human psychology. Now, John Nofsinger, identifies the most common investor mistakes through the prism of the world's most public investment catastrophes…

For the past few decades, the financial world has often displayed an unreasonable willingness to believe that "the model is right, the market is wrong," in spite of the fact that these theoretical machinations were largely responsible for the stock market crash of 1987, the LTCM crisis of 1998, the credit crisis of 2008, and many other blow-ups, large and small. Why have both financial insiders (traders, risk managers, executives) and outsiders (academics, journalists, regulators, the public) consistently demonstrated a willingness to treat quantifications as gospel' Nassim Taleb first addressed the conflicts between theoretical and real finance in his technical treatise on options, Dynamic Hedging…

This social theory text combines the structure of a print reader with the ability to tailor the course via an extensive interactive website.