HSP 124-02
Albion College
Fall 02021

Discussion Questions for FF: Part 3

1. What is the appeal of the stock market, and should anyone who has any hesitation to investing in it partake?

2. Pg 117, Samuelson was worried about being passed over for tenure, as he was Jewish and from Indiana. Would such discreet discrimination be able to occur today? Why or Why not?

3. "Ever hear of this guy?" is a very relatable sentence. This sentence is about Bachelier and how his theory/him as a person was forgotten and not even known about until a decade after his death. He was certainly a very lowkey person but his work almost went unrecognized/unknown. How do you feel about situations like this? Imagine the number of people who's work/life is still to know day unknown but probably super valuable in one way or another. 

4. In today's world, where do the 100 dollar bills lie untouched/undiscovered?

5. The text says, "Ironically, the unpredictability of stock prices makes them somewhat predictable --in a statistical sense" (120). Does this make sense?

6. Many of Ed Thorp's discoveries were used by him to gain an upper hand in monetary interactions. Could his talents have been better used?

7. Is personal gain an ethical motivator for scientific discovery?

8. If both gambling and investing exhibit similar unpredictable tendencies, why is one more heavily regulated than the other?

9. On page 166 a mutual fund manager was quoted as saying "the real investment world is too complicated to be reduced to a model." How accurately can computer models predict seemingly irrational human behavior? Could future technological breakthroughs change this?

10.   Do you think that the stock market is efficient, in the sense that it is discussed on page 125?

11.   Do you think there is a way to completely eliminate arbitrage from the market?

12.   Is it more of a gamble to go to a casino or invest in the stock market?