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Dagon comments on Open Thread August 31 - September 6 - Less Wrong Discussion

5 Post author: Elo 30 August 2015 09:26PM

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Comment author: Dagon 01 September 2015 02:50:30PM 1 point [-]

Look at Kelly Betting for some information on why "risk control" is utility maximization.

Presuming you have declining marginal utility for money, picking one random stock gives you the same average/expected monetary outcome, but far lower utility.