(1961, p. 88).
18
Edgeworth (1881, p. 16).
19
Jevons (1957).
20
Quetelet (1842).
21
Quoted in Bernstein (1998, p. 160).
22
We find this a bit disturbing. But not as disturbing as Alan Greenspan's extreme fondness for Ayn Rand. As he wrote in
23
Bockman (2013, p. 47).
24
Haldane (2014).
25
Para (1995).
26
E.g., Cliff Asness (co-founder of AQR Capital Management) (Patterson, 2009, p. 265).
27
Since displacements to the right are positive and displacements to the left are negative, the average is always zero, so it is more convenient to use the root mean square (RMS) – defined as the square root, of the average, of the squares. Measured this way, the deviation of the hypothetical stock from its starting point grows with the square root of time.
28
The standard deviation is just the RMS again, see note above, but with all distances measured from the mean rather than from zero.
29
Galton (1889).
30
Quoted in Bernstein (1998, p. 200).
31
Bachelier (1900).
