Monkeys on a Typewriter
Team Latte
Feb 18, 2005
If you take an infinite number of fund managers or proprietary traders and make them trade all the stocks in the universe then there is a certainty that one of them will come out with an astronomical - equivalent of a say, 10,000% - return.
Well, we have deduced this fact or rather inferred it from a famous mathematical lemma called the Borel-Cantelli Lemma. This lemma says that if one puts an infinite number of monkeys in front of typewriters and lets them clap away then there is a certainty that one of them will come out with an exact version of Shakespeare's Hamlet.
(Read Nassim Taleb's classic book Dynamic Hedging for more on this).
  
Any comments and queries can be sent through our web-based form.
|
a d v e r t i s e m e n t
