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On Time and Risk

  • Paper
  • 2009
  • #Ergodicity #Finance
Ole Peters
@ole_b_peters
(Author)
tuvalu.santafe.edu
Read on tuvalu.santafe.edu
1 Recommender
1 Mention
Let’s say I offer you the following gamble: You roll a dice, and if you throw a six, I will give you one hundred times your total wealth. Anything else, and you have to give me all... Show More

Let’s say I offer you the following gamble: You roll a dice, and if you throw a six, I will give you one hundred times your total wealth. Anything else, and you have to give me all that you own, including your retirement savings and your favorite pair of socks. I should point out that I am fantastically rich, and you needn’t worry about my ability to pay up, even in these challenging times. Should you do it?

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Thomas Hollands @tdoggyholhol
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On Time and Risk: Brilliant essay by @ole_b_peters. Some takeaways. The game: You roll a die. If a 6, I give you 100x your wealth. If not, you give me everything you own. The expected return is 1600%. Should you play? 1/7
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