Suppose you have the choice between a 100 safe investment


Suppose you have the choice between a 100% safe investment returning 5% or a 90% safe investment returning 25% (this means that with probability 1/10 you will lose everything). Calculate how to invest your money using the Kelly strategy. Calculate the effective rate of return on your investment over the long term.

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Business Economics: Suppose you have the choice between a 100 safe investment
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