Indices, index funds and ETFs: exploring HCI, nonlinear risk and homomorphisms

Indices, index funds, and ETFs are grossly inaccurate and inefficient and affect more than 120 trillion Euros worth of securities, debts, and commodities worldwide.

This book analyzes the mathematical/statistical biases, misrepresentations, recursiveness, nonlinear risk and homomorphisms inherent in equity, debt, risk-adjusted, options-based, CDS, and commodity indices - and by extension, associated index funds and ETFs.

The book characterizes the 'Popular-Index Ecosystems,' a phenomenon that provides artificial price-support for financial instruments, and can cause systemic risk, financial instability, earnings management, and inflation.