# A Can Somebody solve the Rich Investor's Paradox?

1. May 22, 2017

### WWW Mechanical PE

Let us assume you have been given an immense amount of money and you are worth $50 billion. In addition you have a clairvoyant that can read tomorrow’s edition of the Wall Street Journal. You decide to start investing in stock because you believe you have a sure thing. Now a fundamental-assumption in derivatives theory says all investor thinking is embedded in the market-pricing and hence the stock-market is omniscient. In addition all physical laws say a cause is required for every effect in a deterministic way. Now consider 3 Cases: Case 1 The clairvoyant looks in his crystal ball, reads off the stock prices, and sees 6,631,257 million shares of ABC company traded tomorrow with the price going up by$4.25 per share. ABC company is worth let’s say around $5 billion. You want to test his ability to predict, so you secretly decide to buy 100,000 shares today at around$20/share. The next day everything is exactly correct, and determinism appears to be working.

Case 2

8. Jun 3, 2017

### Staff: Mentor

You don't need the stock market. Ask the clairvoyant how many fingers you will show, and then show a different number.
The classical grandfather paradox, and the possible solutions to it are all well-studied. With the additional option of "the clairvoyant can be wrong".

9. Jun 3, 2017