In "Financial Applications" chapter consider to use models optimized for the fat-tailed distributions

[XVilka]

Skimmed through the "Case Studies" section and found Finance Applications chapter. It's widely known that the Black-Scholes model doesn't work, along with the classical portfolio theory. It would be nice to cover more modern approaches tailored for a better risk management, fat-tailed distributions and the modern portfolio theory.
See:

• arXiV - Statistical Consequences of Fat Tails: Real World Preasymptotics, Epistemology, and Applications by Nassim Taleb
• https://insight.factset.com/hubfs/Resources%20Section/Brochures/MAC-fat-tail-model-summary-brochure.pdf?t=1534191908931
• https://www.econstor.eu/obitstream/10419/45631/1/659400324.pdf

[ryanrhymes]

Thank you very much for the constructive feedback, I really appreciate it. MPT will definitely be covered, as well as some optmisation methods like integer programming and monte carlo and etc.

I will go through the references more carefully later, thanks again.