Studying Binomial as well as Normal return dynamics in discrete time, we explain how , in zero-growth environments, trading strategies can be found which generate exponential growthof wealth. We include numerical results for simulated and real world processes confirming the observed phenomena while also highlighting implicit risks.
Studying Binomial and Gaussian return dynamics in discrete time, we show how excess volatility can be traded to create growth. We test our results on real world data to confirm the observed model phenomena while also highlighting implicit risks.
R
as well as Normal
and Gaussian
R
explain how , in zero-growth environments, trading strategies can be found which generate exponential growthof wealth. We include numerical results for simulated and real world processes confirming the observed
show how excess volatility can be traded to create growth. We test our results on real world data to confirm the observed model