John Authers, Columnist

Financial Models Are Not a Substitute for Good Judgment

There’s a big problem with the notion that volatility is risk, as espoused by Peter Bernstein in his classic book “Capital Ideas.”

Is Wall Street built on flawed assumptions?

Photographer: Drew Angerer/Getty Images North America
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Those of you reading along with the Authers’ Notes book of the month, “Capital Ideas” by Peter Bernstein, appear to be well ensconced in the narrative. Follow the links to catch up on the project, which is to read a classic introduction to the academics who promulgated the models that are now the foundations of modern finance.