Summary of Harry M. Markowitz's Risk-Return Analysis, Volume 3

Please note: This is a companion version & not the original book. Sample Book Insights: #1 The central questions for the present volume are: A. By what principles would an RDM go from information to investment and other game-of-life decisions. B. How can HDMs and their DSSs apply these principles, at least approximately. #2 The questions of whether to become a philosopher, a mathematician, or a scientist are all questions with which great minds have struggled for centuries.
I began reading philosophy when I was in high school, long before I developed portfolio theory. #3 The first two questions in the Introduction to this chapter are: What kinds of things can we know. and How are we to come by this knowledge. I recommend that you do a Descartes-like exercise and consider the things you may doubt. #4 If we seek certainty, we must ignore sense experience. The senses have sometimes lied to us, and we can't trust a witness who sometimes does not tell the truth.
Descartes distrusts memory as well, since he doesn't trust the sense impressions before him now.