Sublime

$1.2 million risk-adjusted value.

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In the idealized model, the portfolio manager has an accurate probability distribution on the future performance of each asset in the universe of potential investments. Kelly’s methodology then provides a quantitative specification of how big a position to take in each of the candidate assets. Not surprisingly, the fraction of one’s portfolio to be

Kahneman et al. presented 867 jury-eligible subjects with descriptions of legal cases (e.g., a child whose clothes caught on fire) and asked them to either Rate the outrageousness of the defendant’s actions, on a bounded scale, Rate the degree to which the defendant should be punished, on a bounded scale, or Assign a dollar value to punitive damage

automatic escalation: savings rates are automatically increased annually, usually by 1 percent per year.

Unfairly imposing losses on people can be risky if the victims are in a position to retaliate.

Rich is a current income.