The most famous equation in finance, the Black-Scholes/Merton equation, came from physics. It launched an industry worth trillions of dollars and led to the world’s best investments. Go to and use the code Veritasium for $200 off your Pod Cover.
If you’re looking for a molecular modeling kit, try Snatoms, a kit I invented where the atoms snap together magnetically -
▀▀▀
A huge thank you to Prof. Andrew Lo (MIT) for speaking with us and helping with the script.
We would also like to thank the following:
Prof. Amanda Turner (University of Leeds)
Owen Maher (Electrify Video Partners)
▀▀▀
References:
The Man Who Solved the Market: How Jim Simons launched the quant revolution, Gregory Zuckerman. Penguin Publishing Group. -
The Physics of Finance: Predicting the Unpredictable: Can Science Beat the Market? James Owen Weatherall. Short Books. -
The Statistical Mechanics of Financial Markets, . Springer. -
Black, F., & Scholes, M. (1973). The pricing of options and corporate liabilities. Journal of political economy, 81(3), 637-654. -
Cornell, B. (2020). Medallion fund: The ultimate counterexample?. The Journal of Portfolio Management, 46(4), 156-159. -
Images & Video:
Ed Thorp on The Tim Ferris Show -
Jim Simons on TED -
Jim Simons on Numberphile -
▀▀▀
Special thanks to our Patreon supporters:
Adam Foreman, Anton Ragin, Balkrishna Heroor, Bill Linder, Blake Byers, Burt Humburg, Chris Harper, Dave Kircher, David Johnston, Diffbot, Evgeny Skvortsov, Garrett Mueller, Gnare, I.H., John H. Austin, Jr. ,john kiehl, Josh Hibschman, Juan Benet, KeyWestr, Lee Redden, Marinus Kuivenhoven, Max Paladino, Meekay, meg noah, Michael Krugman, Orlando Bassotto, Paul Peijzel, Richard Sundvall, Sam Lutfi, Stephen Wilcox, Tj Steyn, TTST, Ubiquity Ventures
▀▀▀
Directed by Will Wood and Derek Muller
Written by Will Wood, Emily Zhang, Petr Lebedev and Derek Muller
Camera operation by Raquel Nuno
Additional research by Gregor Čavlović
Edited by Jack Saxon and Trenton Oliver
Animated by Fabio Albertelli, Jakub Misiek, Ivy Tello, David Szakaly and Will Wood
Produced by Will Wood, Han Evans and Derek Muller
Thumbnail by Ren Hurley
Additional video/photos supplied by Getty Images and Pond5
Music from Epidemic Sound
1 view
226
69
2 weeks ago 00:04:59 1
Outkast - Ms. Jackson (Official HD Video)
2 weeks ago 00:13:29 1
Colonel Douglas Macgregor Reveals TRUTH About US Government!
2 weeks ago 00:29:21 2
TIMELAPSE OF THE FUTURE: A Journey to the End of Time (4K)
2 weeks ago 01:19:54 1
Climate: The Movie (The Cold Truth) Updated 4K version
2 weeks ago 00:12:18 1
Почему исчезли Теплоходы на подводных крыльях РАКЕТА и МЕТЕОР?
2 weeks ago 00:18:06 1
Something Weird Is Happening in California
3 weeks ago 00:40:34 1
VOCALOID & UTAU - Nico Nico Cho Party 2016 (rus sub)
3 weeks ago 00:19:14 1
Biden CAUGHT in humiliating lie, PISSES OFF 93 million Americans!
3 weeks ago 00:03:17 1
NewsCaster Ai Review And Demo
3 weeks ago 00:28:29 1
Collapse of Ukraine’s defense lines, Attacks on ZNPP, G7 will spend 10 trillion on weapons, BRICS
3 weeks ago 00:08:01 1
How to biohack your cells to fight cancer - Greg Foot
3 weeks ago 00:03:09 1
미국, 대만 TSMC에 반도체 보조금 9조원 지원 US Boosts TSMC with Massive Semiconductor Aid
3 weeks ago 01:17:38 1
GOJIRA - Terra Incognita (Full Album)
3 weeks ago 00:07:48 5
IMF Warns Private Credit Market Faces Liquidity Risks
3 weeks ago 00:08:10 1
PREPARE!! 2024 Solar Eclipse And Cicadas Scary Prediction
3 weeks ago 00:54:32 1
Оккультные тайны герметического братства
3 weeks ago 00:03:49 1
Five Finger Death Punch - THE END (Official Lyric Video)
3 weeks ago 00:12:52 1
Riding the World’s Fastest Train | 🇯🇵 603km/h Maglev L0
3 weeks ago 00:13:12 1
1 in a Trillion Moments in Football
3 weeks ago 00:37:04 1
Vanguard - The 8 Trillion Dollar Financial Empire | 2023 Documentary
3 weeks ago 00:02:46 4
America Braces For Cicada Takeover
3 weeks ago 00:37:48 1
Новые музыкальные издания. Март 2024.
3 weeks ago 00:04:11 1
Why People Choose RFK Jr. Over Biden & Trump
3 weeks ago 00:12:01 1
That Time The Military Let $2.3 Trillion Go “Missing“ - How Money Works