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“In the financial markets, however, the connection between a marketable security and the underlying business is not as clear-cut. For investors in a marketable security the gain or loss associated with the various outcomes is not totally inherent in the underlying business; it also depends on the price paid, which is established by the marketplace. The view that risk is dependent on both the nature of investments and on their market price is very different from that described by beta.”

“If you look back on the history of the 20th century, the 19th century or even to the ancien régime of the 18th, you will see that first people rebelled against the order of the things because of lack of liberty, and demanded more freedom. And when they got more freedom, they got frightened, and they desired more security for a change. After a while, they started complaining, although more secure, they also become more dependent and rule-bound.”