Monkeys on a Typewriter
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).
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