About this document
Complexity in Financial Markets by Bruce Odera is a document available to read on EtoBox.
This document discusses complexity in financial markets. It makes three key points: 1) Complexity only matters when investors are boundedly rational, not perfectly rational. Providing more information does not necessarily help boundedly rational investors due to information overload. 2) Defining what makes a financial instrument "complex" is difficult. For example, while CDO tranches seem complex, equity in financial institutions can be even more complicated. 3) For boundedly rational investors, comple
- Author
- Bruce Odera
- Language
- EN