Royal Baby Name - After much deliberation, anticipation and betting, proud parents Kate Middleton and Prince William finally announced the name of their second child. But why did the Duke and Duchess of Cambridge named their newborn princess as Charlotte Elizabeth Diana?

As reported by several sources, the newest British royal, a princess born on Saturday weighing 8 lbs and 3oz, has been finally named after renowned royals in UK's history - Queen Charlotte, Queen Elizabeth II and Princess Diana of Wales. According to CNN, Princess Charlotte Elizabeth Diana will also be called as "Her Royal Highness Princess Charlotte of Cambridge."

By naming their newborn baby as Princess Charlotte Elizabeth Diana, the Telegraph noted that Kate Middleton and Prince William are continuing a long tradition in both the Royal family and the Middletons since both sides have Charlotte, Elizabeth and Diana in their ancestry.

Charlotte is the feminine version of the name Charles, which means "free man" while Charlotte means "petite" and "feminine." According to Daily Mail, Charlotte is rather regal and has been used in England since the 17th century. It is also the middle name of Kate Middleton's sister Pippa. Elizabeth, on the other hand is the Queen's name and Kate's middle name and Diana is Prince William's late mother's name.

Before the name of Kate Middleton and Prince William's daughter was announced, royal watchers have already betted in guessing Princess Charlotte Elizabeth Diana's name. As reported by Ladbrokes, the betting industry have paid out an estimated £1 million to punters who have guessed the name right.

"Charlotte was the hot tip over the weekend and royal watchers up and down the land are quids in," Ladbrokes spokeswoman Jessica Bridge told Telegraph UK. "We may have lost a fortune but we're paying out with a smile and wish the Duke and Duchess all the best."

Meanwhile, Princess Diana's brother, Earl Spencer, has also reacted to the name of Kate Middleton and Prince William's daughter.

"Perfect names," Spencer tweeted. "My 2-year old Charlotte Diana will be thrilled at cousinly name-sharing. Is at an age where thinks world revolves around her!"

Princess Charlotte Elizabeth Diana is fourth in line to the throne succeeding Prince Charles; her father, Prince William; and her brother, Prince George. Before the rule was changed by Queen Elizabeth when Kate Middleton was pregnant with Prince George, the princess would not have been called a princess at all. Instead, she would have been given the title, Lady Charlotte Mountbatten-Windsor.