This is a summary of links featured on Quantocracy on Thursday, 07/25/2024. To see our most recent links, visit the Quant Mashup. Read on readers!
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Bayesian Solutions and Linear Asset Pricing Models [Alpha Architect]What is a Bayesian solution? Good question. Bayesian statistics, named for Thomas Bayes, is a structured framework that allows one to update the probability of an event occurring as new data about that event becomes available. In the context of the infamous Factor Zoo in investing, Bayes rule provides an avenue for the investor to revise his/her beliefs about the likelihood that a stock will