[gaming_mouse]

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Var1/EV1<RTT; Var2/EV2<RTT.

You can choose only one. How do you choose?

Since EV and variance are additive, the question can be reduced to whether the bet that doesn't take any of your time and has EV'=EV2-EV1 and Var'=Var2-Var1 is attractive to you. I am saying that it is attractive when

Var'/EV'<RTTmax, where RTTmax<RTT.

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Good explanation. I follow everything so far.

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RTTmax can be interpreted as the risk tolerance treshold for an infinite wage.

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This loses me. Why can it be interpreted this way? Just because it takes no time? You are still only winning EV'...
so calling it an infinite wage confuses me. Am I missing something?