Tag Archives: betting

We showed in Chapter 6 that side information Y for the horse race X can be used to increase the growth rate by the mutual information I(X;Y). We now extend this result to the stock market. Here, I(X;Y) is an … Continue reading

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Leverage & Derivatives

Derivatives contracts allow you to make bets on an asset without owning it. Like a side bet. I don’t have to own, watch, or like the Dallas Cowboys to bet on their success / failure. You can bet on a … Continue reading

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Leverage & Derivatives

Derivatives contracts allow you to make bets on an asset without owning it. Like a side bet. I don’t have to own, watch, or like the Dallas Cowboys to bet on their success / failure. You can bet on a … Continue reading

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