Adaptive Finance

Embracing Uncertainty and Complexity

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$50.00 US
On sale Feb 24, 2026 | 232 Pages | 9780262051415

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A groundbreaking bridge between traditional financial theories and emerging interdisciplinary approaches, offering a unique perspective on finance in these uncertain times.

From a seasoned expert in finance, behavioral finance, complexity science, and quantum finance.


Adaptive Finance is a forward-looking exploration of the evolving world of finance, addressing the most pressing challenges and emerging trends facing financial markets today. It examines how traditional economic and financial models, long dominant in the field, are being redefined by advancements in behavioral science, mathematics, and technology. Financial professionals and academics must confront risks and dynamics that established theories often fail to capture in an era marked by complexity, technological disruption, and global uncertainty. This book provides the intellectual foundation needed to tackle these challenges.

The chapters span a wide range of topics—from behavioral finance and causal models to quantum finance and innovations in financial systems—offering a comprehensive view of the forces reshaping finance. The book begins with well-established frameworks and progressively explores cutting-edge concepts, guiding readers through the transformation of financial theory and practice. Each chapter stands on its own, making the book suitable for both comprehensive study and selective reading. The authors present a timely perspective on how finance must adapt to a more complex and dynamic world.
Preface
Chapter 1: Introduction: Breaking Boundaries in Modern Finance
Chapter 2: Behavioral Finance and Its Integration into Quantitative Models
Chapter 3: Toward A Comprehensive Economic Framework: The Role of Causal Models
Chapter 4: The Integration of Complexity Science In Financial Modeling
Chapter 5: The Role of Mathematical Modeling and New Economic Thinking in Modern Finance
Chapter 6: Emerging Risks and the Future of Quantitative Finance
Chapter 7: Entangling Markets: The Role of Quantum Probability in Financial Systems
Chapter 8: Rethinking Economics and Finance Through Complexity and Empirical Approaches
Chapter 9: Navigating Financial Innovation: From Data-Driven Decisions to Technological Disruption
Notes
References
Frank J. Fabozzi is Professor of Practice at Johns Hopkins Carey Business School. He is the author of Entrepreneurial Finance and Accounting for High-Tech Companies and Introduction to Fixed-Income Analysis and Portfolio Management, and coauthor of Bond Markets, Analysis, and Strategies, Tenth Edition, and Foundations of Global Financial Markets and Institutions (all MIT Press).

Sergio Focardi is Professor at the University of Genoa, where he teaches risk management and financial engineering. He has taught at EDHEC Business School at Stony Brook University, Princeton University, and Pôle Universitaire Léonard-de-Vinci, near Paris. He is the author or coauthor of 24 books and more than 100 peer-reviewed papers.
“Fabozzi and Focardi masterfully describe a broad range of technological innovations and emerging risks shaping the practice of finance. They display extraordinary scholarship in a way that is succinct though hardly superficial, and with remarkable clarity. “
—Mark Kritzman, CEO, Windham Capital Management; Senior Lecturer, MIT Sloan School

Adaptive Finance offers a concise, accessible, and compelling survey of modern finance’s evolving frontiers—curating key debates, innovations, and challenges with clarity and insight. Fabozzi and Focardi have produced an invaluable resource for practitioners and scholars alike.”
—Andrew B. Weisman, Founding Partner, Market Revealed Preference

“It is rare when a book can bridge the gap between academics and pragmatic portfolio management. Yet, Adaptive Finance seamlessly achieves this balance.”
—Mark Anson, CEO and CIO, Commonfund; author of The Handbook of Alternative Assets
additional book photo

About

A groundbreaking bridge between traditional financial theories and emerging interdisciplinary approaches, offering a unique perspective on finance in these uncertain times.

From a seasoned expert in finance, behavioral finance, complexity science, and quantum finance.


Adaptive Finance is a forward-looking exploration of the evolving world of finance, addressing the most pressing challenges and emerging trends facing financial markets today. It examines how traditional economic and financial models, long dominant in the field, are being redefined by advancements in behavioral science, mathematics, and technology. Financial professionals and academics must confront risks and dynamics that established theories often fail to capture in an era marked by complexity, technological disruption, and global uncertainty. This book provides the intellectual foundation needed to tackle these challenges.

The chapters span a wide range of topics—from behavioral finance and causal models to quantum finance and innovations in financial systems—offering a comprehensive view of the forces reshaping finance. The book begins with well-established frameworks and progressively explores cutting-edge concepts, guiding readers through the transformation of financial theory and practice. Each chapter stands on its own, making the book suitable for both comprehensive study and selective reading. The authors present a timely perspective on how finance must adapt to a more complex and dynamic world.

Table of Contents

Preface
Chapter 1: Introduction: Breaking Boundaries in Modern Finance
Chapter 2: Behavioral Finance and Its Integration into Quantitative Models
Chapter 3: Toward A Comprehensive Economic Framework: The Role of Causal Models
Chapter 4: The Integration of Complexity Science In Financial Modeling
Chapter 5: The Role of Mathematical Modeling and New Economic Thinking in Modern Finance
Chapter 6: Emerging Risks and the Future of Quantitative Finance
Chapter 7: Entangling Markets: The Role of Quantum Probability in Financial Systems
Chapter 8: Rethinking Economics and Finance Through Complexity and Empirical Approaches
Chapter 9: Navigating Financial Innovation: From Data-Driven Decisions to Technological Disruption
Notes
References

Author

Frank J. Fabozzi is Professor of Practice at Johns Hopkins Carey Business School. He is the author of Entrepreneurial Finance and Accounting for High-Tech Companies and Introduction to Fixed-Income Analysis and Portfolio Management, and coauthor of Bond Markets, Analysis, and Strategies, Tenth Edition, and Foundations of Global Financial Markets and Institutions (all MIT Press).

Sergio Focardi is Professor at the University of Genoa, where he teaches risk management and financial engineering. He has taught at EDHEC Business School at Stony Brook University, Princeton University, and Pôle Universitaire Léonard-de-Vinci, near Paris. He is the author or coauthor of 24 books and more than 100 peer-reviewed papers.

Praise

“Fabozzi and Focardi masterfully describe a broad range of technological innovations and emerging risks shaping the practice of finance. They display extraordinary scholarship in a way that is succinct though hardly superficial, and with remarkable clarity. “
—Mark Kritzman, CEO, Windham Capital Management; Senior Lecturer, MIT Sloan School

Adaptive Finance offers a concise, accessible, and compelling survey of modern finance’s evolving frontiers—curating key debates, innovations, and challenges with clarity and insight. Fabozzi and Focardi have produced an invaluable resource for practitioners and scholars alike.”
—Andrew B. Weisman, Founding Partner, Market Revealed Preference

“It is rare when a book can bridge the gap between academics and pragmatic portfolio management. Yet, Adaptive Finance seamlessly achieves this balance.”
—Mark Anson, CEO and CIO, Commonfund; author of The Handbook of Alternative Assets

Photos

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