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What is wrong with financial modeling, in my opinion, is not only that models cannot grasp too complex "reality", but that it is changing while you are finishing your model, so no statistical "snapshot" or data-set is even close to be correct.

Also, so-called Black swans could occur only within such models. There is no chance that one day c or even g could change (no matter what "scientists" used to say in journals).

Btw, finance is a business, not science.)



> There is no chance that one day c or even g could change (no matter what "scientists" used to say in journals).

Well the thing is, c is defined in metres per second. And since 1983, the metre "has been defined as 'the length of the path travelled by light in vacuum during a time interval of 1/299,792,458 of a second.'".[0]

Since 1983, c is defined as constant.

[0] https://en.wikipedia.org/wiki/Metre


You don't actually wan't your model to be a fit to the data -- which I think you are implying it is.


Yeah, so, I'm guessing you don't do a lot of financial modelling.


Not everyone is so lucky.




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