My Best Pick 2014

Of science, homoscedascity and high returns

Ridham Desai of Morgan Stanley feels the market is more of science and less of maths

Published 8 years ago on Jun 25, 2015 5 minutes Read
Soumik Kar

For someone with a science background, like me, a question that frequently came to mind is which science best describes the characteristics of the stock market. To the casual observer, it may appear to be physics or mathematics. After all, markets contain so much complexity and calculations and are amenable to algorithms — it must be mathematics or physics. The reality seems different. Put simply, both physics and maths are subject to laws; for instance, the law of motion or the law of thermodynamics.