750 words essay to discuss Keynes’ concept of “uncertain” knowledge

Keynes wrote in The General Theory:“If we speak frankly, we have to admit that our basis of knowledge for estimating the yield ten years hence of a railway, a copper mine, a textile factory … amounts to little and sometimes to nothing”. Keynes was not talking about periods of economic turmoil or crisis like that we are experiencing now, when confusion about what happens next is obvious to all. In Keynes’ view, a state of “near ignorance” was the normal state of affairs.

Discuss Keynes’ concept of “uncertain” knowledge and what it may imply for our ability to (a) measure risk in portfolios of financial assets and to (b) make “rational” investment decisions as a “portfolio manager” of financial assets as well as by a CEOs and corporate management teams of operating companies.

Given our inability to accurately “do the math” when we are making decisions about a future events with an uncertain outcome, describe how people {like you and me} usually make those decisions?What implications may this “reality” have for the way financial markets actually function?