Bogleheads might be amused by a blog post on the mathematics of lottery tickets (and other high standard deviation/high payoff "investments").
Basically:
Basically:
- The mean return is usually negative.
- When it's positive, it's usually less than a safer alternative.
- When it returns more than the safer alterative, the Sharpe ratio is miserable.
Statistics: Posted by sgr000 — Sun Dec 15, 2024 9:34 am — Replies 15 — Views 533