Abstract
The subject of investment finance holds significant importance in contemporary society, with position management in investment serving as a critical factor in determining outcomes of success or failure. Acquiring knowledge in the realm of efficient asset allocation can significantly enhance individuals' ability to effectively oversee their financial resources. The Kelly formula, initially employed for determining the proportion of funds wagered on a particular game, has emerged as a prominent betting strategy within the realm of probability theory. This method aims to optimize the overall growth rate of the main amount throughout a series of independent bets, each of which is intended to yield positive net returns. This study will examine the historical context of the Kelly formula, its mathematical derivation, its utilization in the realms of gambling and investment, and its consequential implications for individuals' investment strategies.
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callMore From: Advances in Economics, Management and Political Sciences
Disclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
