Originally Posted by
DGenBen
Gambler A puts $1,000 in a 12 month FDIC insured CD with a 5% APR.
Gambler B has a $1,000 bankroll. Twice a week he visits his local casino where they offer a fair coin flip bet. Since it’s 50/50 they charge a 5% commission on all bets.
Gambler B has a set win goal and a set stop loss and will always quit for the day when either one is reached.
Gambler B also happens to be the luckiest person to have ever existed on earth.
At the end of 12 months who will have more money?