Modeling a Risk-Averse Investor in the Stock Market Pt. 3: Trying to Find a Closer Approximation for the net value
In this blogpost, I will attempt to find an approximation for the series posted in part 2. In part #2, we had the table: ROI based upon the period we invested in (1/r) Sum of each investment Period 1 ROI Period 2 ROI Period 3 ROI Period 4 ROI Period J *SPECIAL CASE* $1/1 $1/1 $1/1 $1/1 + … 1+1+1+1 + … = $J Investment #1 $1/2 $1/4 $1/8 $1/16 + … ½ + ¼ + 1/8 + 1/16 + … = $2.00 Investment #2 $1/3 $1/9 $1/27 $1/81 + … $1/3 Continue reading Modeling a Risk-Averse Investor in the Stock Market Pt. 3: Trying to Find a Closer Approximation for the net value