PokerCollectif - risk

  • Risk

    This article is taken from the book "The Short Book on Investments" by Dr. Jin Won Choi. 

    Suppose someone proposed the following bet. He will flip a coin. If it turns heads, you win $22,000; tails, you lose $20,000. Would you take this bet? The chances are, you wouldn’t. According to research, most people wouldn’t take this bet either (but a few would).