If you had a 50 50 chance of doubling or losing everything in a minute, would you buy that stock?

Answer 1

If you had truly had a 50/50 chance, no, because there is no edge. Stocks generally have a positive return expectation. If you put in $1, your expected return on this investment would be $2 * 50% + $0 * 50% = $1, or exactly what you put in. So your expected profit is nothing. If I am going to take a risk, I want the expected return to be positive. In addition, it has to be positive enough to justify the risk I'm taking. In this case, the expected return is zero...therefore I have no interest in taking it.

Answer 2

For anyone who says "yes" -- find the nearest roulette table and put all your money on red or black.

It is almost the same deal -- there is a SLIGHTLY less than 50/50 chance (.05) as the ball might land on the green zero(s).

Answer 3

Depends on who calculated that "50 - 50" chance.

Answer 4

Nope. Sounds like a scam. Slow and steady wins the race.

Answer 5

Probably.. if I personally felt confident in that stock.. if I had a good gut feeling.

Answer 6

yes but unlike alot of people i can afford to lose the money

Answer 7

My Grandfather, who probably borrowed this from others once stated.

"If you want to "double" your money, take it, fold it in half, and put it back in your pocket."

Vegas gives you better odds BTW, by simply choosing BLACK or RED

Steven Wolf

Answer 8

Yes, if you have the money to lose.

Answer 9

yes

Answer 10

give me all the nessasary info required to make a decision and i will tell you.