ABSTRACT
As scientific disciplines, statistics and finance had their first date in 1900. They met through the work of French mathematician Louis Bachelier, whose thesis (Bachelier, 1900) used the familiar bell-shaped curve or Normal distribution to model differences between prices over time. He was also the first to use another well-known probabilistic object, Brownian motion, to evaluate stock options and model asset returns. Five years later, Albert Einstein used the same process to model the displacement of molecules in a liquid.
