Mathematics in Finance

Mathematical development in England was at a low ebb in the early decades of the nineteenth century, with Cambridge stagnating in the shadow of Newton, who had produced his mathematics nearly a century and a half earlier. This dead hand of tradition, which stifled much initiative and originality, was in sharp contrast to the situation in France.

The real reason that physicians are rotten investors is that it never occurs to them that finance is a science, just like medicine.

Who has studied the works of such men as Euler, Lagrange, Cauchy, Riemann, Sophus Lie, and Weierstrass, can doubt that a great mathematician is a great artist? The faculties possessed by such men, varying greatly in kind and degree with the individual, are analogous with those requisite for constructive art. Not every mathematician possesses in a specially high degree that critical faculty which finds its employment in the perfection of form, in conformity with the ideal of logical completeness; but every great mathematician possesses the rarer faculty of constructive imagination.