Throughout this chapter (and in Problem 1 above) it has been assumed that the return upon success
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Throughout this chapter (and in Problem 1 above) it has been assumed that the return upon success was fixed, e.g. 88 %. But what if the return is only an average? Rework Problem 1 as follows: upon each success, let the return be either 100 % or 76 % equally likely. How does this change your average return rate graph?
Data given in Problem 1
Implement the 60-40 game over 300 iterations and show the fortune of the game for several runs. Assume the return upon success is 88 %. Experiment with several betting fractions above and below the growth rate maximizer. Plot the average return rate as a function of betting fraction. Be sure to make enough runs so that these averages are good to 2 places.
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