Comments on: More on Risk Tolerance

By: Kaa

Kaa — Mon, 26 Jun 2006 11:57:21 +0000

I still think that to talk about risk you must first define what you mean by it. Without a definition to anchor a discussion it’s hard to talk sensibly.
And there *is* a strong relationship between risk and reward in finance. Check any intro economics/finance textbook for explanations of why it is so. Note — this does not mean there is a law-of-physics relationship where higher risk *always* leads to higher reward. The relationship is also much more clear on the level where professionals play, not in retail where things are often driven by marketing and stupidity.
Kaa

By: anonymous FC Engineer

anonymous FC Engineer — Mon, 26 Jun 2006 02:24:22 +0000

hmm… when I was bringing up chaumian ecash software and accompanying mint and devised a still unpatented approach to anonymous ecash via using 3 e-gold accounts(called the 3-ring circus internally) for an unamed failed corp from the dotcom.bust, the CEO of the company wanted to accept credit cards for egold calling fraud a matter of “risk management”. He was greatly surprised when the development staff quit en-masse upon hearing of his plans and has sunk back into his former life as an FC pundit.
He simply WOULD NOT understand simply you never give cash for credit in the emoney field, to do so is to go broke.
He thought the engineering staff didnt understand risk, obviously I and they understood it FAR better then he did.
anon

By: Alex Hutton

Alex Hutton — Sun, 25 Jun 2006 21:00:14 +0000

“I misunderstand risk.”
Does anyone?
:)