KELLY CAPITAL GROWTH INVESTMENT CRITERION, THE: THEORY AND PRACTICE (World Scientific Handbook in Financial Economics)

The Kelly Formula: The Definitive Treatment of Fortune's Formula is a comprehensive guide to maximizing long-term wealth through dynamic investing.

This book provides a definitive treatment of the Kelly capital growth criterion, offering insights into the strategy that has been adopted by great investors throughout history.

With a logarithmic utility function, the Kelly formula maximizes expected utility of wealth over time, leading to significantly higher long-term wealth than other strategies.

While the Kelly formula can lead to considerable losses in the short term, fractional Kelly strategies can be used to reduce this risk while maintaining expected final wealth.

This book covers various aspects of the theory and practice of dynamic investing, including good and bad properties, fixed-mix and volatility-induced growth strategies, and relationships with utility theory.

Whether you're a seasoned investor or just starting out, The Kelly Formula is an essential resource for anyone looking to maximize their long-term wealth.