Most startups implicitly disbelieve the efficient market hypothesis, since they'd be able to get the same level of risk by using leverage. Most of them seem to

Most startups implicitly disbelieve the efficient market hypothesis, since they'd be able to get the same level of risk by using leverage. Most of them seem to think they might have an edge, in which case the proper criterion is: http://en.wikipedia.org/wiki/Kelly_criterion http://en.wikipedia.org/wiki/Kelly_criterion