The interesting, central finding of the theory paper is that when a «fortune» (available resources) fall below a certain critical level (determined by the cost per unit time of surviving, and the stochastic return investments available to the investor), the optimal policy becomes what economists call a «risk - seeking» one, where the investor should place relatively large bets on
relatively high payoff, low probability of payoff gambles.
Not exact matches
Generally, the ideal candidate to consolidate debt through
Payoff will have a
relatively high level of income and significant account balances on
high interest credit cards, but they may have managed to maintain a
high credit score despite their struggles with debt.
What she meant was, very
high payoff, but it requires a lot of work and the chance of success is
relatively low.
Although these individual probabilities are rare, the
payoffs are so
high that a
relatively small number of successes can boost a small - cap portfolio's returns.