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Old 08-03-2005, 12:28 PM
Derek in NYC Derek in NYC is offline
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Join Date: Jun 2004
Posts: 130
Default Re: ENTIRE bankroll on AA, a variation

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It's usually assumed that magnitude amplifies risk aversion. Hence one is willing to ride a roller coaster but unwilling to play Russian Roulette.

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In this hypothetical, however, the magnitude of consequence is the same, namely, risk of ruin.
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