Avoid explaining the mathematical theory of eigenvalues and positive definite matrices by giving a finance answer.

Talking about eigenvalues in a client meeting is asking for trouble because the mathematical explanation can quickly derail a meeting and cause confusion. Instead, I find it preferable, if asked, to explain eigenvalues from a financial perspective, rather than to worry too much about communicating the theory.

So, if you find yourself in a risk management meeting with the convers

Avoid explaining the mathematical theory of eigenvalues and positive definite matrices by giving a finance answer. Talking about eigenvalues in a client meeting is asking for trouble because the mathematical…