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Heisenberg’s Uncertainty Principle and its Implications for Financial Institutions

Submitted in Partial Fulfilment of Master of Business Administration

By

KARTIK CHANDRA CHATURVEDI
Batch (2013-2015) University Roll No: S133F0010 December 2014

Under the guidance of

NIDHI KAICKER

SCHOOL OF BUSINESS, PUBLIC POLICY AND SOCIAL ENTREPRENEURSHIP AMBEDKAR UNIVERSITY DELH
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CERTIFICATE

This is to certify that I have successfully completed the project titled Heisenberg’s Uncertainty Principle and its Implications for Financial Institutions submitted in partial fulfilment of the requirements for the Degree of Master of Business Administration at the School of Business, Public Policy and Social Entrepreneurship, …show more content…

The study draws economic analogies for Heisenberg‘s Uncertainty principle and concentrates on the 17 largest Investment Banks and the 10 largest Mutual Funds. It tries to quantify the uncertainty and lists the economic mass of every institution from among the two groups and the average economic masses of each group as well. The study was restricted to publically listed Investment Banks and Mutual Funds and the model was not applicable to privately held and boutique banks and also wasn‘t applicable to hedge funds and other private funds which did not report their Net Asset Value Returns. According to the findings, the economic mass was highest for Goldman Sachs while Toronto Domino Bank shows the least economic mass. When it comes to Mutual Funds, Pimco the world‘s largest mutual fund had the lowest economic mass; the exposure to the crisis could be the reason behind this. The American Funds Growth Fund of America has the highest economic mass. This study has been able to show that the Heisenberg‘s Uncertainty Principle has implications for financial institutions. For future research, one could look into applying the model for privately held Financial Institutions and those funds which do not report their returns like Hedge Funds.

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LIST OF TABLES
TABLE NUMBER 1). 2). 3). 4). 5). 6). 7). 8). 9). TITLE LIST OF INVESTMENT BANKS LIST OF MUTUAL FUNDS LIST OF TIME SERIES TESTS CARRIED

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