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Much statistical analysis in finance depends on the assumption that variables have normal distributions. This assumption is far from correct. As a result, as Nassim Nicholas Taleb has rightly pointed out, most statistical results in finance are wrong. Now, a disciple of Taleb has tried to extend Tale...

Much statistical analysis in finance depends on the assumption that variables have normal distributions. This assumption is far from correct. As a result, as Nassim Nicholas Taleb has rightly pointed out, most statistical results in finance are wrong. Now, a disciple of Taleb has tried to extend Taleb’s research by relating it to an obscure mathematical concept. He is successful in one area: the study of unequal distributions of wealth. In others, such as portfolio optimization and explaining insurance, less so.

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Remember that what will work in the future must not make a lot of sense now. A lot of what makes sense (in naive first order logic) has already been tried --and failed. @rorysutherland