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Technology Stocks : Cisco Systems, Inc. (CSCO) -- Ignore unavailable to you. Want to Upgrade?


To: Elroy who wrote (74658)11/22/2007 12:15:53 PM
From: zekecisco  Respond to of 77400
 
Elroy,

As if you don't know this, the market is in a downtrend, Cisco will follow the same pattern.

Zeke



To: Elroy who wrote (74658)11/23/2007 9:13:39 AM
From: RetiredNow  Respond to of 77400
 
Hi Elroy,

no I would not. Let me tell you why by giving you a thought experiment. Which bet below do you prefer?

Your Bet:
EV = -$190*.05 + $10*.95 = 0

Or Mine:
EV = $27*.05 + $30*.90 + $32*.05 = $30

With your bet, I could end up losing $190. With my bet, the worst I can do is $27. Even if I do much worse than that, the probability is extraordinarily high that I will still end up with more money than $0.

So to sum up, first, your bet has a much lower downside than mine. Second, these two bets are not equivalent. So I'm not sure why you think that may be the case.