With this assertion, Peters effectively annuls the marriage between risk and uncertainty and forcefully argues that risk can often be lowered when uncertainty is increased. As Peters notes, the human mind cannot possibly anticipate all of the consequences of any course of action, otherwise our life's decision-making could be satisfied by Bayesian analysis. A statistician would state that expected return is the probability weighted average of possible returns, and risk is the bunching of possible returns around an expected return. The bulk of the book then, is Peters's lucent analysis expounding on the need for uncertainty. However, the discussions regarding various process models and their implications for economic activity are worth the price of admission alone.
Interested investors ought to check it out.
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