Claude Shannon (father of Information Theory) showed that balancing 50% cash with 50% of a zero-return, highly volatile stock generates positive geometric growth (+12.5% per cycle) by automatically buying low and selling high during dynamic rebalancing.
Timeline Step ScrubStep 2 / 2
Shannon's Portfolio
$1,125.00
+12.50% Return
Buy & Hold Stock
$1,000.00
0.00% Return
Harvested Volatility Alpha
+$125.00
+12.50% Alpha
Harvested Alpha Proof:Shannon 50/50 portfolio achieved $1125.00 (+12.50%) vs Buy & Hold $1000.00 (0.00%) over full cycle.