The Leverage Space Portfolio Model in the Real World 385
. 75 × 1. 5 ×. 75 × 1. 5 = 1. 265625
. 75 × 1. 5 ×. 75 ×. 75 =. 6328125
. 75 ×. 75 × 1. 5 × 1. 5 = 1. 265625 (ruin)
. 75 ×. 75 × 1. 5 ×. 75 =. 6328125 (ruin)
. 75 ×. 75 ×. 75 × 1. 5 =. 6328125 (ruin)
. 75 ×. 75 ×. 75 ×. 75 =. 31640625 (ruin)
Here, only the last four saw our stake drop to .6 or lower of initial equity
at any time.
RR(.6)= 4 / 16 =. 25
And now for five plays:
∀ 2 P 5 =
1. 5 × 1. 5 × 1. 5 × 1. 5 × 1. 5 = 7. 59375
1. 5 × 1. 5 × 1. 5 × 1. 5 × 0. 75 = 3. 796875
1. 5 × 1. 5 × 1. 5 × 0. 75 × 1. 5 = 3. 796875
1. 5 × 1. 5 × 1. 5 × 0. 75 × 0. 75 = 1. 8984375
1. 5 × 1. 5 × 0. 75 × 1. 5 × 1. 5 = 3. 796875
1. 5 × 1. 5 × 0. 75 × 1. 5 × 0. 75 = 1. 8984375
1. 5 × 1. 5 × 0. 75 × 0. 75 × 1. 5 = 1. 8984375
1. 5 × 1. 5 × 0. 75 × 0. 75 × 0. 75 = 0. 94921875
1. 5 × 0. 75 × 1. 5 × 1. 5 × 1. 5 = 3. 796875
1. 5 × 0. 75 × 1. 5 × 1. 5 × 0. 75 = 1. 8984375
1. 5 × 0. 75 × 1. 5 × 0. 75 × 1. 5 = 1. 8984375
1. 5 × 0. 75 × 1. 5 × 0. 75 × 0. 75 = 0. 94921875
1. 5 × 0. 75 × 0. 75 × 1. 5 × 1. 5 = 1. 8984375
1. 5 × 0. 75 × 0. 75 × 1. 5 × 0. 75 = 0. 94921875
1. 5 × 0. 75 × 0. 75 × 0. 75 × 1. 5 = 0. 94921875
1. 5 × 0. 75 × 0. 75 × 0. 75 × 0. 75 = 0. 474609375 (ruin)
0. 75 × 1. 5 × 1. 5 × 1. 5 × 1. 5 = 3. 796875
0. 75 × 1. 5 × 1. 5 × 1. 5 × 0. 75 = 1. 8984375
0. 75 × 1. 5 × 1. 5 × 0. 75 × 1. 5 = 1. 8984375
0. 75 × 1. 5 × 1. 5 × 0. 75 × 0. 75 = 0. 94921875
0. 75 × 1. 5 × 0. 75 × 1. 5 × 1. 5 = 1. 8984375
0. 75 × 1. 5 × 0. 75 × 1. 5 × 0. 75 = 0. 94921875
0. 75 × 1. 5 × 0. 75 × 0. 75 × 1. 5 = 0. 94921875
0. 75 × 1. 5 × 0. 75 × 0. 75 × 0. 75 = 0. 474609375 (ruin)