Hostname: page-component-7bb8b95d7b-s9k8s Total loading time: 0 Render date: 2024-10-01T13:23:58.986Z Has data issue: false hasContentIssue false

Get rich slowly, almost surely*

Published online by Cambridge University Press:  23 January 2015

David Benko*
Affiliation:
University of South Alabama, Department of Mathematics and Statistics, ILB 325, Mobile, AL 36688 USA, e-mails: dbenko@jaguar1.usouthal.edu., dbenk02007@yahoo.com

Extract

You see a Martian walking on the street. What do you do?

(i) seek shelter

(ii) take some pictures

(iii) introduce yourself and offer him/her/it a ride

(iv) go online to buy lots of stocks.

In this article we analyse the long term behaviour of stock investments.The above unusual question will be answered too. In the discussion the notion of ‘almost surely’ will be often used. An event happens almost surely if it happens with probability 1. Note that it is still possible that an almost certain event A does not happen, but the probability of that (i.e. the probability of the complement of A) is zero.

Type
Articles
Copyright
Copyright © The Mathematical Association 2012

Access options

Get access to the full version of this content by using one of the access options below. (Log in options will check for institutional or personal access. Content may require purchase if you do not have access.)

Footnotes

*

Footnotes will provide UK equivalent terms or definitions to the US terminology. Further information can be found at investopedia.com

References

1. Williams, R. J., Introduction to the mathematics of finance, AMS (2006).Google Scholar
2. Goetzmann, W. N. and Ibbotson, R. G., The equity risk premium: essays and explorations, Oxford University Press, USA (2006).CrossRefGoogle Scholar
3. Klebaner, F. C., Introduction to stochastic calculus with applications, (2nd edn.), Imperial College Press, London (2005).Google Scholar
4. Kelly, J. L. Jr., A new interpretation of information rate, Bell. System Tech. J. 35 (1956) pp. 917926.CrossRefGoogle Scholar
5. Poundstone, W., Fortune's Formula, Hill and Wang (2006).Google Scholar
6. Mehra, R. and Edward, C. P., The equity premium: a puzzle, Journal of Monetary Economics, 15 (2) (1985) pp. 145161.CrossRefGoogle Scholar
7. Benko, D., A lottery-like stock market, Math Horizons, (February 2011) pp.2428.Google Scholar
8. Malkiel, B. G., The random walk guide to investing, W. W. Norton (2007).Google Scholar