Evolutionary Finance

Acknowledgements Preface PART 1: INTRODUCTION PART 2: THE 'OLD' VIEW OF FINANCE The Efficient Market Hypothesis A Little More on the Link Between the Theory and the Applied Cost, Ability and Speed: Important Information Determinants Do Empirical Studies of the EHM Shed any Light on the Actual Is 'Strong EHM' all there is to the 'Traditional' View of Markets PART 3: THE 'NEW' VIEW OF FINANCE 'New' View Challenge No. 1: Determinism, Complexity Theory 'New' View Challenge No. 2: Bounded Rationality 'New' View Challenge No. 3: Trading Rules. Evolutionary So Where Does Evolutionary Finance Fit-in to the 'New' View PART 4: THE MECHANICS OF MODELING INFORMATION AS AN EVOLUTIONARY PROCESS Evolutionary Information Basics: Memetics and the Contribution Moving Past the Elementary: Taking the Evolutionary The Building Blocks of our Evolutionary Approach Toward Some Consequences of our Evolutionary Approach Toward How Investors Interpret Evolutionary Information PART 5: PUTTING IT ALL TOGETHER - AN EVOLUTIONARY MODEL OF THE MARKETPLACE Stage 1: Developing an Intertemporal Optimization Model Stage 2: Linking Analyst Research Output to Asset Price Stage 3: Highlighting our Preferred Model of the Market PART 6: THE IMPLICATIONS OF OUR EVOLUTIONARY PERSEPCTIVE FOR DISTRIBUTIONAL FORM Foundations for an Evolutionary Approach Toward Analyst/Investor Strategies and the Ecology of the Market Some Implications of our Results PART 7: EVOLUTIONARY FINANCE - AN APPLIED PERSPECTIVE A Primer on Evolutionary Algorithms Evolutionary Asset Selection Evolutionary Portfolio Construction Does it Work? The Results of 10 Years of Out-of-Sample PART 8: FUTURE DIRECTIONS - THE PATH AHEAD FOR EVOLUTIONARY FINANCE Future Directions for Evolutionary Finance - The Theory Future Directions for Evolutionary Finance - The Practice Appendix 1: A Glossary of Investment Terms Appendix 2: An OLG Form Evolutionary Model of the Marketplace Appendix 3: Some Background on Evolutionary Finance Ltd Bibliography Index