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Ask HN: High risk doesn't equal to high returns – PG's Bus ticket theory
2 points by ssoonns 45 days ago | hide | past | favorite | 1 comment
I think the traditional interpretaion of high risk=high return is flawed. 1) The relationship is false because if high risk produces high return then everyone would flock to it which by definition isn't risky. 2) A better relationship would be high risk=high 'expected' return. 3) The expected return is related to the risk taken (i.e. time spent) and we don't know much time Newton spent (or risked) in each of the three domains. Therefore it is hard to gauge the correlation among the three different domains.

Would you agree?




I would say that high risk requires high returns.




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