Posted by Richard Reid on July 02, 1997 at 22:43:53: In Reply to: Answers posted by Steve Heston on July 02, 1997 at 21:28:33:Steve:
Thanks. You've been most helpful. I will take your suggestion. I also understand what you're saying about including variance in the equation. Things are actually starting to gel. Although I'm still a bit fuzzy on what "logarithmic growth" really is and how it differs from "exponential growth".
In any case, I would assume that the next step in maximizing the the expected value of the logarithm of one's bankroll is to find the derivative of the equation and set it equal to zero.
Sincerely,
Richard Reid