Archive for November, 2014

Misbehaving supermodels: She ain’t so pretty after all

Wednesday, November 19th, 2014

By Stephen Pearson, a Masters of Applied Finance student

“Beauty is a form of Genius–is higher, indeed, than Genius, as it needs no explanation…It cannot be questioned. It has divine right of sovereignty. It makes princes of those who have it.” – Oscar Wilde. 

One does not usually associate supermodels with those in the risk management profession. While the term ‘models and bottles’ has long been associated with high-flying investment bankers, their middle-office brethren, the risk managers, have always played the nagging house-wife to the bread-winners of high finance.  Yet those in the middle office, while far removed from the limelight of the catwalk, have taken to supermodels of a different kind; models whose beauty is defined by mathematically elegant expressions of risk.

(more…)

Never expected this. Yeah, right… whatever!

Wednesday, November 19th, 2014

By Stephen Rollings, a Master of Business Administration student

We human beings are irrational. If I were to ask you what value you would place on a sandwich, your answer would not be based on the attributes of the sandwich alone. How much you value the sandwich will be influenced by the price of other sandwiches, the availability of other lunch options, what other people are eating and prepared to pay, and what else you have been exposed to directly before I ask you the question. If I then ask you to explain your evaluation you will come up with some delusional reason as to why you valued the sandwich how you did, when in reality it is unlikely you understand the real reasons for our behaviour.

(more…)


Privacy | Copyright matters | Accessibility
Contact us | Feedback | Disclaimer
Opinions expressed in this blog are those of the individual contributors only.
QUT Home | Blog Home