...here's a "fun" financial puzzle for you:
John Smith is in trouble. You see, he has liquid assets worth $500,000. Normally, that wouldn't be a bad thing, but John Smith owes Tony Soprano $1,000,000, and the loan comes due in exactly one year from today. If he doesn't pay up, and in full, Tony is going to have him whacked.
John Smith figures that, in a worst case scenario, he could take his $500,000 to Vegas, bet it all on red on a single roulette wheel spin, and have a nearly 50% chance of paying off his debt. (He'll worry about the IRS after he pays off Tony.)
You're John Smith's broker. Can you come up with a better investment strategy for John Smith and his $500,000?
Posted by: Doug S. | January 22, 2009 at 01:18 PM
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