Nassim Taleb on a bet most people would take: 70% chance to win $1, 30% chance to lose $1 - should you bet?
His answer: in most cases no. Not because of risk aversion. Because it's a bad strategy in multi-period reality
Same Kelly Criterion math that powers Shannon's information theory - there's a sweet spot, and most behavioral finance papers ignore it
Bet too much and the law of large numbers ruins you. Bet too little and you leave returns on the table
this is what every quant learns before they touch capital
@arturoesau Ah bueno si ya directamente vas a ignorar lo que escribo y creerte lo que mas se te acomode pues bueno. Que tus nueronas no funcionen no es pedo mio.