Benoit Mandelbrot: Markets Are Not Efficient

Benoit Mandelbrot: The Thinking Behind Why Trend Following Works
Benoit Mandelbrot: The Thinking Behind Why Trend Following Works

Benoit B. Mandelbrot: “The risk-reducing formulas behind portfolio theory rely on a number of demanding and ultimately unfounded premises. First, they suggest that price changes are statistically independent from one another…The second assumption is that price changes are distributed in a pattern that conforms to a standard bell curve. Do financial data neatly conform to such assumptions? Of course, they never do.”