This is a summary of links featured on Quantocracy on Friday, 04/02/2021. To see our most recent links, visit the Quant Mashup. Read on readers!
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Not so soft softmax [OSM]Our last post examined the correspondence between a logistic regression and a simple neural network using a sigmoid activation function. The downside with such models is that they only produce binary outcomes. While we argued (not very forcefully) that if investing is about assessing the probability of achieving an attractive risk-adjusted return, then it makes sense to model investment decisions