“Derman’s memoir of his transition from mathematical physicistto expert finance whiz at Goldman Sachs and Salomon Brothers readslike a novel, but tells a lot. Last week I was in a bookstore and ran across a new book by Emanuel Derman called My Life as a Quant: Reflections on Physics and Finance. In My Life as a Quant, Emanuel Derman relives his exciting journey as one of the first high-energy particle physicists to migrate to Wall Street.
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And yet a sober scepticism, learned the hard way all those years ago in university libraries, underpins his world view. Nowadays, the fortunes offirms and the stability of markets often rest on mathematicalmodels. Physics and quantitative finance look deceptively similar.
Pure thought and beautiful mathematics can divine the laws of physics. They have only two condoms, and everyone is scared of catching some venereal disease. Page by page, Derman details his adventures in this field–analyzing the incompatible personas of traders and quants, and discussing the dissimilar nature of knowledge in physics and finance.
Different endeavors require different de-grees of precision. It is elegantly written by a gifted observer who was apioneering member of the new profession of financial engineering, with an evident affection both for finance as a science and for thescientists who practice it.
Financial engineering becomes a real field. It was an extremely pleasant reading, much to my surprise. In he went to work in the financial industry at Goldman Sachs, staying there untilinterrupted by a one-year stint at Salomon.
It discusses what life is like in Physics and the nature of the problems he got to work on and similarly in Quantitative Finance. He also talks about his life as a graduate student in a department which was not well managed nor concerned with its students’ career development, unfortunately all too common.
Anyone with a serious interestin finance and everyone who simply wants to enjoy a goodread. Samuelson, MIT, Nobel Laureate in EconomicSciences, “Elegantly written by a gifted observer who was a pioneeringmember of the new profession of financial engineering with anevident affection both for finance as a science and for thescientists who practice it.
He tells the story of his passage between two worlds; he recounts his adventures with physicists, quants, options traders, and other highfliers on Wall Street; he analyzes the incompatible personas of traders and quants; and he meditates on the dissimilar natures of knowledge in physics and finance.
Back to be a professor in the end, he looked back his adventure, no regret, life is journey, we assumed dermab we chose. Nine months after September 11Derman left Goldman to return to Columbia, where he now leads the programme in financial engineering. Indeed, I didn’t really understand the nature of what he actually did in finance terribly well.
Book ratings by Goodreads. A new cast of characters. Later, he obsesses over leaving pure physics to do applied research at Bell Laboratories. In My Life as a Quant, Emanuel Derman relives his exciting journey as one of the first high-energy particle physicists to migrate to Wall Street.
Other editions – View all My Life as a Quant: Full circle, back to Columbia. Getting out of graduate school, only half-alive. Planets must obey Newton’s Laws? Also his detailed description of the implied tree model is very intuitive and interesting. Table of contents Prologue: Algorithmic and high-frequency trading – where buy and sell decisions are made by computer programs in milliseconds – are now a real concern.
My Life as a Quant : Emanuel Derman :
Dec 31, Dave Bolton rated it liked it. The glory days of particle physics. Derman together with Paul Wilmott wrote the Financial Modelers’ Manifestoa set of principles for doing responsible financial modeling. For example, how is this possible?
q It’s clearly what the author is interested in, and where his reputation was made, so it’s fair enough to include it. In the last chapter, he struggles futilely to make philosophical statements about physics and financial math and their respective abilities to describe and predict the tangible world.
It’s closer to 4 stars m 3. I don’t make this as a character judgement, but it doesn’t make his autobiography very exciting. One physics paper leads to another.
My Life as a Quant: Reflections on Physics and Finance by Emanuel Derman
Covers the increasing sophistication of Goldman Sachs and their competitors from the early 80s to aroundincluding some key models in a very light and non-intimidating way. Set up a giveaway. InDerman published a new book titled Models. ComiXology Thousands of Digital Comics. The particulars of the physics theories were a bit over my head, but I grasped what he was writing about enough to understand the overall points.
Who should read this book? Jan 25, John rated it liked it. Amazon Inspire Digital Educational Resources. Goodreads helps quatn keep track of books you want to read. He was appointed a managing director of Goldman Sachs in Finally, the second man dons the second condom over the one he is already wearing, and sleeps with the second woman, who again only experiences a condom she has already touched.
Pure physics had room kife the top for only a handful of people.