Risk Update – March 2019

A very good way to understand what it is that we do, or at least try to do, is to make an analogy to what, in the world of mathematics, is known as the St Petersburg Paradox. The gist of the paradox is a game where a fair coin is tossed and the player wins two dollars if heads comes up, and the amount of winnings doubles if heads come up in successive tosses. At any point that tails comes up the game is over and the player gets his accumulated payout. Simple math shows that the player has a…