[R-SIG-Finance] Cramer vs. Pseudo-Cramer, etc.

[Patrick Burns]

Newly on the Burns Statistics website is:

Cramer vs. Pseudo-Cramer
http://www.burns-stat.com/pages/Working/cramer_vs_pseudocramer.pdf

A recent Barron's article examined the efficacy of stock
recommendations on the television show Mad Money.
Statistical analyses of stock recommendations are scrutinized
here in detail, and a powerful analysis using random portfolios
is suggested. Differences between simple returns and log
returns are discussed, as is the usefulness of the statistical
bootstrap. The cost to individuals of trading stocks can easily
overwhelm even quite good recommendations.

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Patrick Burns will be speaking at a couple of upcoming events
in London:

October 24: One description is that it is an advertisement for
R and Monte Carlo techniques in risk management.

November 13-15: Quant Invest conference.

Links for these events can be found on the Finance page:
http://www.burns-stat.com/pages/finance.html

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http://www.burns-stat.com/pages/Tutor/spreadsheet_addiction.html
has been been updated to include a link to a discussion of a
humorous (to some) numerical bug in Excel 2007.



Patrick Burns
patrick at burns-stat.com
+44 (0)20 8525 0696
http://www.burns-stat.com