Every Concept has a Form, as expounded by #Plato.
But, it does not mean, that a complex concept cannot have simple explainable forms?
It can!
All Computational Algorithms that train various Mathematical or Statistical Models are a representation of some theory, which originated as a concept using logical methods of enquiry, having empirical or rational forms.
Model #Parsimony could be best understood in the light of #Occam's Razor.
The simplest explanation might offer the best solution, but, unfortunately, as they are so many unemployed people with quantitative skill sets, some of them, have resorted to making our lives miserable by deliberately instilling complexity models as a problem-solving method.
why make things so overtly difficult to understand? because there is an academic mafia that wants to overcomplicate and confuse the masses.
We faced similar problems in the financial markets, where complicated pricing and #risk management methods gave birth to complex financial products, which many did not understand.
It requires brilliance to break down complex problems into simpler solvable versions, whereas, on the other hand, it is a mark of sheer incompetence, to write and solve simple problem statements using complicated methods.
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However, its applications in Social Sciences and its sub-fields such as Economics and Business Studies is growing all the time.
Finance and Risk are broadly categorized as subfields of Microeconomics.
That's my opinion.
The two subjects (Risk and Finance, which I would like to jointly refer to as Risk Finance) share a lot in common with the Pricing Theory, Utility Theory, Portfolio Theory, Risk Pooling, Risk Financing and Risk Sharing Theories, the Moral Hazard Problem,
In the field of Investment Risk and Research Analyses, the research/risk analyst has to make a choice between two asset selection and/or allocation approaches.
The first approach is referred to as the “Top-Down Analysis” and the second is its opposite, the “Bottom-Up Analysis”.
The power of the human mind is the state of Consciousness that exists!
Risk Managers must increase their level of situational awareness to develop a proactive sense of negative and positive events, having single or multiple outcomes.
Psychology of Risk Perception cant be ignored
Listen to this man to understand how Psychology affects events across both Natural and Social Sciences, etc.
Buy Vs. Sell-Side Risk Information: Time to Differentiate between “Your Risk” and “My Risk” Reports @CFAinstitute@GARP_Risk
Report Sample of Asset Allocation Analytics
Well, we all are accustomed to reading “Buy” and “Sell-Side” Investment Evaluation Reports prepared by Financial Research Analysts at various FIs such as Investment Companies operating in the Financial Markets.
Was speaking to someone regarding the development of transferrable, applicable, and/ or any other learning and development related commutative technical skills during the period of study at any polytechnic or a university.
Of course, the conclusion we drew might help pedagogy.
What kind of skills we develop bifurcates into two directions.
Direction 1- #STEM Based Skill Programs
Direction 2- #Liberal#Arts, #Humanities and other #Social#Sciences based Skill Programs
Over time the divergence particularly in the fields of social sciences and natural sciences has been reduced due to advancements, interfaces, and cross-fertilization of concepts, theories and models, being exchanged.
Hence, Skills are being shared and improved upon both ways!
Is doing a PhD in finance better than doing a PhD in economics and concentrating in finance?
Both have their own merits and demerits!
Doing a PhD is a matter of great honour and will turn you into a scholar-practitioner in your area of work. So if the financial markets are down, you can always move out of the banks/ hedge funds and get into the world of academics and continue to make a living.