Comment author:tiedemies
17 April 2007 10:14:51AM
0 points
[-]
Some economist once stated something like, the stock market is like a casino with odds against the "house". It means the expected gain is not zero, but positive.
If the market grows at g, with a little financial engineering, it should be possible to create a portfolio with expected gain somewhere between zero and g, with a very very long tail, i.e., a non-zero chance of huge payoffs.
= 27d567bc2d48d9f40e9ccc20ea370b15)
= b715d02e85f7b3b4ae65ca3d3e450868)
Subscribe to RSS Feed
= f037147d6e6c911a85753b9abdedda8d)
Some economist once stated something like, the stock market is like a casino with odds against the "house". It means the expected gain is not zero, but positive.
If the market grows at g, with a little financial engineering, it should be possible to create a portfolio with expected gain somewhere between zero and g, with a very very long tail, i.e., a non-zero chance of huge payoffs.