Colm Connaughton (London Mathematical Laboratory) introduces the power compounding random walk in which the drift term produces power law growth in time. This process interpolates smoothly between the additive and multiplicative random walks. Colm discusses the ergodicity breaking properties of this process and the origin of volatility drag in the multiplicative case. In particular, he addresses the question of whether the power compounding random walk is more like the simple case or more like the multiplicative case.
