You have diminishing returns to money, i.e. your utility vs. money curve is curved down. So a gamble with mean 0 has some cost to you, approximately (curvature) * (variance), that I was referring to as the cost-via-risk. This cost is approximately linear in the variance, and hence quadratic in the block size.
You have diminishing returns to money, i.e. your utility vs. money curve is curved down. So a gamble with mean 0 has some cost to you, approximately (curvature) * (variance), that I was referring to as the cost-via-risk. This cost is approximately linear in the variance, and hence quadratic in the block size.