THE MISBEHAVIOUR OF MARKETS
The Misbehavior of Markets by Benoît B. Mandelbrot challenges traditional financial theories, arguing that markets are far more unpredictable and chaotic than conventional models suggest. Mandelbrot, known for his work in fractal geometry, criticizes the Efficient Market Hypothesis and Modern Portfolio Theory, showing how market movements often display extreme volatility, irregular patterns, and sudden crashes. He introduces fractal mathematics as a better tool for understanding financial risk and price fluctuations. The book reveals why financial markets are more turbulent and complex than economists admit, urging investors to rethink risk, uncertainty, and market behavior beyond standard economic theories