Ok, I’m throwing in the towel on erodicity. I’ve tried to understand how it applies to investing but just don’t get it. If I’m wrong please convince me otherwise!
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Very helpful. So the application to finance is that MPT is based assume ergodicity yet investing is anything but?
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I would say equality of time average and ensemble average, not probabilities in general only in some very special case.
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Sure, albeit I referred to the probability "space" which is the set of all possible outcomes (all paths). This begets the ensemble average for a dynamical system, as the mean of the probability distribution of all possible states of that system.
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Being able to explain things in plain language is

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BTW, many people, including trained economists, dont know that real GDP, price indexes and therefore inflation is path dependent. Even if the start and end points are the same, two different paths will give you two different GDP and price index numbers at the end!
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I guess I can be forgiven for not knowing this either!
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the recent push of ergodicity economics is that for the most part it is nonergodic markets? right? (sorry only skimmed that paper)
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@AyeshaSelden put this in your newsletterHvala. Twitter će to iskoristiti za poboljšanje vaše vremenske crte. PoništiPoništi
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