Re:Amazon.com Announces Second Quarter Sales Up 20%
by kgwgk on Friday July 26, 2019 @12:09PM
(#20535837)
And while it’s true that if markets were efficient you wouldn’t be compensated for diversifiable risk it’s also true that a) markets are not efficient and b) uncertainty in the results of companies is correlated with the market and not completely diversifiable.
A second game also costs $10k to enter, but the (50/50) payouts are $9k and $13k.
Do you find then equally attractive? Most people wouldn’t.
If you do, what if you could instead “play” a game where you pay $10,000 and get $10,999 straight away? It’s a worse proposition if you’re risk-neutral, isn’t it?