In other words, gaining $1M has to be no more than about 25% better than gaining $1k.
Interesting. My thought process was that it’s worth losing $8000 in EV to avoid a 1% chance of losing $1000. I think my original statement was true, but perhaps poorly calibrated; these days I shouldn’t be that risk-averse.
Interesting. My thought process was that it’s worth losing $8000 in EV to avoid a 1% chance of losing $1000. I think my original statement was true, but perhaps poorly calibrated; these days I shouldn’t be that risk-averse.