This is a summary of links featured on Quantocracy on Tuesday, 08/17/2021. To see our most recent links, visit the Quant Mashup. Read on readers!
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Designing Neural Networks [Enjine]Unfamiliar terms have a way of impressing us. I remember the first time I heard about the Monte Carlo method. The name conjured up an image of a sophisticated technique, born out of deep discussions by brilliant mathematicians in a Spanish cafe. Turns out, its just a by-word for running lots of randomized simulations. Numerous other fancy terms likewise dress up simple concepts. Linear
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Financial Media, Price Discovery, and Merger Arbitrage [Alpha Architect]This paper contributes to the literature on understanding the limits of arbitrage and the resulting dynamics of price discovery. Specifically, it studies the context of "merger arbitrage," which is a well-known investment strategy and unless there are limits to arbitrage, this market segment should be highly efficient. The authors ask the following question: Do texts in financial media