Kelly criterion

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At the Core of Finance Lies Geometry. In the End, It’s All Jensen’s Inequality. At the Core of Finance Lies Geometry. In the End, It’s All Jensen’s Inequality.
30 min read Keywords:  Jensen's inequality, Kelly criterion, ergodicity economics, tail hedging, logarithms, Spitznagel, Taleb, Peters

A 400-year journey through logarithms, Kelly, ergodicity, and tail risk to show why geometry sits at the core of finance and why Jensen’s inequality ties the whole story together.