Fischer Black and the Revolutionary Idea of Finance | Session 1

This is the first of three sessions on Perry Mehrling's 2005 book Fischer Black and the Revolutionary Idea of Finance.

https://www.amazon.com/Fischer-Black-Revolutionary-Idea-Finance/dp/1118203569/

From Mehrling's Amazon Author Page:

My second book, Fischer Black and the Revolutionary Idea of Finance (Wiley 2005), tells the story of the rise of modern finance, both as a set of ideas and as a set of institutions, that transformed the monetary landscape starting in about 1970.

This week, we discuss the prologue and the first five chapters:

• Prologue: The Price of Risk
• Chapter 1: Thou Living Ray of Intellectual Fire
• Chapter 2: An Idea in the Rough
• Chapter 3: Some Kind of Education
• Chapter 4: Living Up to the Model
• Chapter 5: Tortuous Economic Intuition

Focus especially on Chapter 3 pages 93–98 "where the essentials of Fischer's interpretation of CAPM are laid out." These pages discuss the automatic portfolio rebalancing scenario that Mehrling presents in Lecture 22.