R

Intro Harry Markowitz of Modern Portfolio Theory fame said that “Diversification is the only free lunch in investing” as it allows investors to reduce volatility without eroding returns. Diversification, through pooling of independent insured exposures, is also fundamental to risk management in insurance.

I recently picked up the book Mathletics “How gamblers, managers, and fans use mathematics in sports.” by Wayne Winston after hearing a recommendation in an online R meetup. The first chapter “Baseball’s Pythagorean Theorem” describes a mathematical relationship attributed to Bill James.