m******t
发帖数: 273 | 1 An interview question:
Given two closed same envelopes, one may have $20 or $10, another one may
have $20 or $5.
You pick up one randomly and find it has $10, now you are given a chance to
make decision about whether to open another envelope.
If yes, you have to given up the $10 that you have earned and accept the
money in it no matter it is more or less than
your $10 currently in your hand.
How to make the decision ?
Any help would be appreciated.
Thanks ! | n****e
发帖数: 2401 | 2 Depends on the expected result, and your var tolerance. Typical stupid
questions at wall st.
to
than
【在 m******t 的大作中提到】
: An interview question:
: Given two closed same envelopes, one may have $20 or $10, another one may
: have $20 or $5.
: You pick up one randomly and find it has $10, now you are given a chance to
: make decision about whether to open another envelope.
: If yes, you have to given up the $10 that you have earned and accept the
: money in it no matter it is more or less than
: your $10 currently in your hand.
: How to make the decision ?
: Any help would be appreciated.
| k*****n
发帖数: 117 | 3 a few points to think about:
1. is this game played once or repeated a large number of times
2. what is your utility function? linear to $? risk averse? risk seeking?
3. can you sell the 2nd envelope to someone, say the one who asked this
stupid question, for more than $10 and lock in a profit
4. tail risk-bias in behavioral finance. I won't care if I get $20 or $5 in
exchange for $10. But I do when they becomes $20M, $5M, and $10M. | c*******y
发帖数: 1630 | 4 是傻，这题本来可以设计的好点，来考一下对position sizing/pyramid的理解的。
【在 n****e 的大作中提到】
: Depends on the expected result, and your var tolerance. Typical stupid
: questions at wall st.
:
: to
: than
| m******t
发帖数: 273 | 5 We can suppose that the player is risk nutral.
Why this can be used to test "position sizing/pyramid" ?
Any help would be appreciated !
Thanks !
【在 c*******y 的大作中提到】
: 是傻，这题本来可以设计的好点，来考一下对position sizing/pyramid的理解的。
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