Risk to Return
March 13th, 2013 at 12:49:37 PM
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Is there a formula for calculating the risk to get a return on a bet? I'M interested in place bets.Such as what is the risk of gettting a return on the next toss if I Place a $6 bet on the 6 and 8.
Thanx of the help
K8
Thanx of the help
K8
March 13th, 2013 at 1:16:32 PM
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Quote: K8Is there a formula for calculating the risk to get a return on a bet? I'M interested in place bets.Such as what is the risk of gettting a return on the next toss if I Place a $6 bet on the 6 and 8.
Thanx of the help
K8
I don't think anyone knows what "risk to return" means, except you. Could you elaborate? The expected loss on a $6 place bet on the 6 or 8 is about 9 cents. ($6*0.0152).
"So drink gamble eat f***, because one day you will be dust." -ontariodealer
March 13th, 2013 at 6:22:04 PM
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Are you trying to apply the investment risk-return tradeoff curve? The return is negative, so the tradeoff curve is immaterial. Don't make the bet.
Wisdom is the quality that keeps you out of situations where you would otherwise need it
March 14th, 2013 at 4:02:29 AM
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I'm not sure I know what it means. something between craps probability and finance? Maybe. In the example above I am investing or putting $12 at risk to get a return. if you win the bet the return is $7 on a $12 risk or 58%. But the risk factor increases with each toss, but what would the risk factor be with just one toss? The probability of a 6 or 8 being tossed is 28% versus 17% of the seven being tossed. Is there a caculation to combine or compare these two factors such that it may be applied to the amount being wagered as a risk factor?
