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arXiv · 1305.4408

Approximately pi proofs that the stock market can approximate pi

Sami Assaf
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Abstract

We give three derivations of Polya's approximation for the expected range of a simple random walk in one dimension. This result allows for an estimation of the volatility of a financial instrument from the difference between the high and low prices, or, equivalently, for an estimation of pi from the ratio of the volatility to the difference between high and low prices.

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Sami Assaf. 2013-05-19. Approximately pi proofs that the stock market can approximate pi. https://arxiv.org/abs/1305.4408

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