You are playing a very simple gambling game with your friend: a $1 bet based on a

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You are playing a very simple gambling game with your friend: a $1 bet based on a coin flip. That is, you each bet $1 and flip a coin: heads you win your friend’s $1, tails you lose and your friend takes your dollar.

How is your risk different if you play this game 100 times versus just betting $100 (instead of $1) on a single coin flip?

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Fundamentals Of Corporate Finance

ISBN: 9781292437156

5th Global Edition

Authors: Jonathan Berk, Peter DeMarzo, Jarrad Harford

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Question Posted: Feb 27, 2024 03:07 AM

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You are playing a very simple gambling game with your friend: a $1 bet based on a

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PLAN The risk of losing one coin flip is independent of the risk of losing the next one Each time yo...View the full answer

Fundamentals Of Corporate Finance

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