Win = 10% return (99%) probability
OR
Use some of the winnings on this near certainty for:
Win = 30% return (45%) probability
Win = 3% return (55%) probability
OR LOSS
>= $5000 depending on scenario. Although (.01)(.55) is a rather small number.
Is this an investment or a gamble??
Say on a sport bet. Is this gambling or an investment????
2007-03-13 18:04:55 · 5 answers · asked by Anonymous in Business & Finance ➔ Investing
It's obviously a gamble. But you'd be dumb not to do it.
2007-03-13 18:12:08 · answer #1 · answered by Anonymous · 0⤊ 0⤋
Sounds like a fairly obvious gamble. First off an investment generally has more to do with the faith (not even blind faith) that a business (or whatever you are 'investing' in) has the ability to deliver a good and make a profit that it is willing to share with you because of your investment.
The fact that you describe this as a sport bet is pretty much a give away that it is not an investment, but a gamble.
Secondly - who gave you the odds? Where did they come from and how were they figured? Be EXTREMELY leery of odds like that given to you by the person asking you to 'invest'.
A gamble is a gamble and most of the time the house wins. And if you are the one being asked to 'invest', then you are NOT the house.
2007-03-13 18:22:54 · answer #2 · answered by my 2 cents 4 · 0⤊ 0⤋
Personally, I'd say it is a gamble. When you're not 100% sure, it's gambling. Even safe gambling is still gambling. It just matters how confident you are and if you can afford the loss...even if you can't afford the loss, are you willing to take the chance? 99% sure could pose a nice payout, but if the circumstances are out of your hands, how positive is 99%??? Hope that helps a little bit. I don't know all the variables with in this exact case, but if I was 99% sure and had the money to spare (which I don't), I may do it. Buuuuut...who knows, I may not :)
2007-03-13 18:15:12 · answer #3 · answered by everangel_dee 2 · 0⤊ 0⤋
this is an investment. u have a calculated risk wether its 99% or not. i'd spend 5000 all day long for a 99% chance to make 500. my investment vehicle is real estate. i'll write a 20,000 check 10 times a day if each one makes me 60k.
if u didn't risk ever, u would have never learned to walk!
2007-03-13 18:19:30 · answer #4 · answered by firemedic311 3 · 1⤊ 0⤋
Go for it. You are almost guaranteed to win if the probability is that high. This would be an investment.
2007-03-13 18:13:00 · answer #5 · answered by me 2 · 1⤊ 0⤋