The Use and Misuse of Models in Investment Management PoorSatisfactoryGoodVery GoodExcellent Be the first. (0 ratings) Log in to rate this article. CFA Institute Conference Proceedings Quarterly December 2009 | Vol. 26 | No. 4 | 9 pages Source: CFA InstituteDouglas T. Breeden Read Abstract Financial models can be extremely helpful in adding disciplined thinking to the investment decision-making process. A failure to recognize some common misuses of models, however, such as overreliance on recent historical experiences and volatilities or a failure to identify nonlinear relationships, makes the use of models less effective than they would be otherwise. Understanding the difficulties and estimation risks associated with modeling complex securities can lead to better investment decisions in the future. View more information Topics Derivatives | Economics | Fixed Income : Structured Products | Quantitative Methods Credits · About the CE Program 0.5 CE (including 0 SER) Record credits Credits recorded Members, log in to record your credits. Manage CE Credits People who viewed this page also viewed: Credit Suisse Global Wealth Report The "Credit Suisse Global Wealth Report" is a comprehensive study of world wealth that analyzes the world’s entire 200 trillion ... More Credit Suisse Global Wealth Databook This Databook displays the detailed dataset backing the "Credit Suisse Global Wealth Report," the comprehensive study of world ... More Top Hedge Fund Investors: Stories, Strategies, and Advice This book chronicles top hedge fund investors that played key roles in the industry, including substantial information on manager sourcing, ... More Loading ...