5 ms·
This is overrated. Grant that you can make 15-20% ROI on your 600K investment, however, you could have 95% chance to lose all of it and 5% chance to hit jackpo
by helloz_0707 11y ago
This is overrated.
Grant that you can make 15-20% ROI on your 600K investment, however, you could have 95% chance to lose all of it and 5% chance to hit jackpot and win say 26 mil. Your expected value is high but no one would play 600K like that, unless you are some rogue hedge fund manager.
You might well invest it in stock market, which has better Risk-reward ratio.
- cpncrunch 11y agoWhere does your 95% figure come from? Although the article doesn't give specific details, it does say "it would only take about $100,000 in tickets to guarantee success", which I take to mean 100% chance you will win the jackpot.
- ryandrake 11y agoYou're not going to make 15-20% in one shot and unlikely to make it yearly, on the stock market.
- __z 11y agoYou are totally missing the point. This one lottery game was set up in a way that if you spend enough money at exactly the right time you are mathematically guaranteed to make more money than you spent. You can't guarantee success in the stock market and certainly not 20% ROI in a few days. It isn't like they just threw $600k at the lottery blindly hoping for a payout. This was a mathematical analysis.
- conanbatt 11y agoThere was still the massive risk of the strategy being replicated by someone else and then both parties would lose money.
- deleted 11y ago[deleted]