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With Leverage, the Gambler is Not the One Who Gets Ruined

Kuszmaul, William
arXiv (All) · Papers
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data-structures-and-algorithmsprobability
In this note we explore the following simple question: How does the classic \emph{gambler's ruin} phenomenon change if we allow the gambler \emph{financial leverage}? We show that, with a moderate amount of leverage, it is possible for an (idealized) gambler to sustain seemingly improbable profits o
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