Here is an extra credit opportunity for Finance 4366. You may earn extra credit by listening to and reporting on the 1 hour, 40 minute podcast hosted by Barry Ritholtz’s Masters of Business podcast (link provided below) entitled “Ed Thorp, the Man Who Beat the Dealer and the Market”. In order to receive extra credit for this assignment, you must submit (via email sent to email@example.com) a 1-2 page executive summary of what you learned from this podcast; it is due by no later than 5 p.m. on Monday, September 18. This extra credit assignment will replace your lowest quiz grade in Finance 4366 (assuming the extra credit grade is higher).
Bloomberg View columnist Barry Ritholtz interviews Ed Thorp, one of the most storied people in finance. A math professor at MIT and UC Ivine, Thorp figured out how to beat Las Vegas at blackjack and baccarat, created statistical arbitrage, and ran a hedge fund that not only beat the market by a wide margin, but never had a losing quarter. He is the author of several books, including “Beat the Dealer” and “Beat the Market”; his latest book is “A Man for All Markets.” Thorp tells Ritholtz that the secret to beating the market is having an edge that’s specific, definable and mathematical. If you don’t, you should be in index funds instead. This interview aired on Bloomberg Radio.