Notes 2472.H. E. Hurst, “Long-Term Storage Capacities of Reservoirs,”Transactions of the
American Society of Civil Engineers, vol. 116 (1951).
3.Edgar E. Peters,Chaos and Order in the Capital Markets(John Wiley & Sons,
1991); Edgar E. Peters,Fractal Market Analysis: Applying Chaos Theory to In-
vestment and Economics(John Wiley & Sons, 1994).
4.Henri Poincare ́,Science and Method(1st ed. 1908; rev. ed. Dover Press, 1952).
5.Edward Lorenz, “Deterministic Nonperiodic Flow,”Journal of Atmospheric Sci-
ences, vol. 20 (1963); Edward Lorenz,Nonlinear Dynamical Economics and
Chaotic Motion(Springer-Verlag, 1989).
6.Alan Wolf, “Chaos in the Stadium,”Algorithm, April 1992.
7.These figures were prepared by Alan Wolf.
8.Alan Wolf, et al., “Determining Lyapunov Exponents from Time Series,”Phys-
ica, vol. 16D (1985).
9.Benoit B. Mandelbrot,The Fractal Geometry of Nature(W. H. Freeman, 1988);
Benoit B. Mandelbrot, ed.,Fractals and Scaling in Finance: Discontinuity, Con-
centration, Risk(Springer-Verlag, 1997).
10.Andrei Shleifer,Inefficient Markets: An Introduction to Behavioral Finance(Ox-
ford University Press, 2000), 121–22.
11.John Y. Campbell and Robert J. Shiller, “The Dividend-Price Ratio and Expec-
tations of Future Dividends and Discount Factors,”Review of Financial Studies,
vol. 1 (1998); John Y. Campbell and John Ammer, “What Moves Stoc kand Bond
Markets: A Variance Decomposition for Long-Term Asset Returns,”Journal of
Finance, vol. 48 (1993).
12.Warren E. Buffett and Lawrence A. Cunningham,The Essays of Warren Buffett:
Lessons for Corporate America(The Cunningham Group, 1997), 72.
13.Warren E. Buffett, “The Superinvestors of Graham and Doddsville,”Hermes
(Columbia Business School), Fall 1984.
14.Benjamin Graham,The Intelligent Investor(1st. ed. 1949; rev. ed Harper & Row,
1973), 36–37.
15.Ibid.
Chapter 4
1.Alex Berenson, “On Hair-Trigger Wall Street, A Stoc kPlunges on Fa ke News,”
The New York Times, August 26, 2000.
2.Susan E. Hurd and Jonathan M. Winer, “On-Line Securities Fraud Under Scru-
tiny,”The New York Law Journal, February 22, 2000.
3.Professor Howard M. Friedman of the University of Toledo Law School fur-
nished testimony providing some of these examples before the Permanent In-
vestigations Subcommittee of the Senate Governmental Affairs Committee on
March 22, 1999.
4.SEC v. Francis Tribble &Sloane Fitzgerald, SEC Litigation Release No. 15959,
October 27, 1998.