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by anamax
1523 days ago
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An example helps. Suppose that you're offered an opportunity to bet $10 with a 90% chance of $0 return and 10% chance of $1,000. That's a good bet, especially if you can keep making it. Put $100 at risk and you've got a reasonable chance of ending up with $1000. Now let's multiply all of the dollars by 1,000. The numbers still work, but how many people can afford to put $100k into 10 bets? There are far more people who can afford to lose $10 than there are people who can afford to lose $10k. |
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