Chapter 494 Optimal Solution
The conflict between quantitative finance and market ethics!
This is not something a second-year university student should have access to.
As students, they are more familiar with theory than practice, so they can only provide the most basic explanations of terms on this topic and it is difficult for them to come up with more in-depth discussions!
"I know what quantitative models are, and I know what market ethics are, but when you put them all together, I know nothing!" Mu Yang sat behind the table, his toes practically digging holes in the floor, muttering to himself, "Don't ask me, don't ask me, please don't ask me!"
"..." Ma Weiwei remained silent, but she didn't even dare to lift her head; her face was practically buried in the table...
Only Wen Ni sat upright, her eyes fixed on the distance ahead with unwavering determination and composure.
Lu Jinye, who was standing in front of the podium, suddenly took a step.
Under the watchful eyes of everyone, he walked up the steps one by one, and came straight to Wen Ni!
An inscrutable light flickered in his deep eyes, and his slender fingers tapped on the table in front of her.
"Young man, I'd like to hear your understanding."
"I?"
Wen Ni looked up and met his eyes.
"Oh my god, she can actually get so close to Lu Jinye! I'm so envious!" The students stirred uncontrollably, their gazes burning with desire as if they wanted to set Wen Ni on fire.
"Can she answer this? It's such a difficult question."
"Sigh~ If I remember correctly, she's a transfer student. She hasn't taken any of the previous courses, so she probably doesn't even understand what those two terms mean! Wouldn't it be too embarrassing if she couldn't say anything in front of everyone?"
The students were whispering among themselves.
The girl in the back row suddenly stood up, her gaze fixed intently on Lu Jinye's profile. "Senior Lu! She doesn't know the answer, so let me answer for her? Quantitative finance refers to using data and logic to quantitatively analyze market data. Market ethics refers to the rules and behavioral norms that participants in economic activities should abide by!"
"You recited the book well." Lu Jinye didn't turn around. "But I don't need the definitions. What I need now is to discuss the relationships between them. Can you answer that?"
"I……"
The girl hesitated for a while, then fell silent.
"Sit down."
"oh……"
The girl's face flushed slightly.
"Nannan, you've already done a great job!"
"Yes, it's better than some people who can't answer anything at all!"
The girl's classmates quickly praised her.
Praising the powerful and belittling the weak.
"Is Wen Ni really unable to answer? I doubt it." Dean Teng, who had been standing on the podium the entire time, looked over with a kind and gentle smile. "Don't hold back. This alumni reunion is for everyone to discuss and speak freely!"
The students were very surprised.
They hadn't expected the Dean of the Imperial Academy to trust Wen Ni so much. How could he be so sure she could answer the question?
"Yes, Dean Transcription."
Wen Ni stood up nimbly after receiving a signal from Dean Teng.
She brushed past Lu Jinye in the aisle, then walked steadily down from the podium to the blackboard.
Turning around to face the hundred or so people below the stage, she showed no stage fright whatsoever, but rather composure and calmness, as if everything was under her control!
"Financial quantitative analysis is a cold, hard market data analysis tool, while market ethics and morality are based on human nature and judge issues from an emotional perspective."
His clear and clean voice, every syllable he utters, exudes extreme confidence and effortless composure!
"Whenever these two concepts are mentioned, we subconsciously tend to see them as opposing forces. When quantitative finance reaches a certain level, we tend to overlook the need for market ethics. Conversely, if we focus excessively on market ethics, the value of quantitative finance models cannot be fully realized. We often say that the essence of financial markets is resource allocation, not moral judgment. However, when our quantitative finance cannot withstand the next financial crisis, we will face a complete collapse!"
At this point, the students in the audience were completely confused.
Wen Ni glanced at them, turned around, and with a flourish of her pen, left a series of formulas on the blackboard: R＝α+β+γ.
"This is the pricing formula for asset capital."
"α is excess return, β is market risk, and γ is residual. We always focus on β and criticize risk, but we forget that γ also contains the creativity and possibilities that humans can change! Financial markets are never static, nor will they be forever confined by models. The involvement of ethics and morality gives people the fighting power to change the rules of the market. Financial quantitative analysis and market ethics are both contradictory and compatible. Only by better integrating the two can we maximize their role and form a stable financial market!"
The fluent yet academically fluent explanation greatly impressed the students present. Although they didn't quite understand the specific meaning, they seemed to be able to vaguely grasp some of it.
The multimedia lecture hall remained silent until Wen Ni finished speaking!
"very good."
Dean Teng broke the silence with applause, unable to hide his smile. "Konno, are you satisfied with my student's answer?"
"Very satisfied! What Wen Ni said is exactly what I wanted to tell everyone here."
The deliberately emphasized words are full of approval!
After Lu Jinye finished speaking, he strode down the steps and passed by Wen Ni. He slightly raised his lips, then resumed his normal expression as he faced the group of classmates.
"Next, I will use real-life examples to give you a more intuitive explanation..."
He spoke eloquently on stage, attracting admiring glances.
Wen Ni, who returned to her seat in the audience, also won a round of applause!
"That girl in Class Two is really amazing!"
"But how could she possibly know these things?"
"Never mind how they know it! They were able to lead the freshmen to great heights during military training, and now they clearly have a deep understanding of academic issues. Whether it's academics or extracurricular activities, they are a hundred times better than us! That's a true academic genius!"
"That's right, that's right..."
Students gave it unanimous praise
The girl sitting in the back row got angrier and angrier as she listened. She unscrewed the bottle cap and took a big gulp, then leaned back and pouted her lips!
The alumni reunion lasted nearly two hours.
The interactive discussions and Lu Jinye's explanations were very lively and interesting, and Wen Ni listened with great interest. In addition to the academic gains, she also saw a completely different side of Lu Jinye this time.
On the podium, he was not like the aloof, decisive, and unapproachable CEO during meetings, nor was he an untouchable myth on the screen! Instead, he was like an approachable older brother next door, answering every question from his younger siblings!
Even though those questions seemed somewhat naive to him.
But he was still very patient and responded to each question.
The charm of a mature man is fully embodied in him!
"Wen Ni, Wen Ni?"
"Um?"
"What are you daydreaming about?" Mu Yang chuckled and poked Wen Ni's arm. "You've been staring at Lu Jinye for ages, you're practically drooling! Be careful your boyfriend finds out!"
“I didn’t look at him.”
Wen Ni quickly looked away, then awkwardly picked up a pen and drew a few messy lines on the paper.
On the podium, Lu Jinye's gaze frequently swept over.
Seeing her head bowed, he felt a little downcast. He wondered if there was a gold mine or a silver mine on her desk. They hadn't seen each other for days, and she barely glanced at him, staring intently at the rickety table. Was the table more attractive than him?
Or is he dressed a little too conservatively today?
Thinking like this
Lu Jinye raised his hand and, seemingly unintentionally, pulled the already open collar further to both sides, deliberately making the lines from his neck to his collarbone appear smoothly.
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