In terms of money: a geometric expectation maximizer will never accept the tiniest risk of absolute bankruptcy, even if it comes with an arbitrarily large probability of an arbitrarily large payoff.
Gee this sure would have been handy in a certain recent scandal involving cryptocurrency.
Gee this sure would have been handy in a certain recent scandal involving cryptocurrency.
Matt Levine at Bloomberg pointed out that SBF should have been using Kelly criterion: https://www.bloomberg.com/opinion/articles/2023-10-04/sbf-was-reckless-from-the-start