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Luca Dellanna on Risk, Ruin, and Ergodicity

EconTalk

The Law of Large Numbers and the Risk of Ruin

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The idea is that the average return is not all that counts, it matters whether you can continue to play. But somehow that's sometimes just too hard to remember,. So try to remember it, folks. It's a very deep idea that actually I use, I use all the time when I think about my own risks"

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