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Risk of ruin information


Risk of ruin is a concept in gambling, insurance, and finance relating to the likelihood of losing all one's investment capital or extinguishing one's bankroll below the minimum for further play.[1] For instance, if someone bets all their money on a simple coin toss, the risk of ruin is 50%. In a multiple-bet scenario, risk of ruin accumulates with the number of bets: each play increases the risk, and persistent play ultimately yields the stochastic certainty of gambler's ruin.

  1. ^ Zenios, Ziemba (2006). Handbook of Asset and Liability Management (1st ed.). p. 388. ISBN 978-0-444-53248-0.

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Risk of ruin

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Deviation risk measure Distortion risk measure Spectral risk measure Risk modeling Risk of ruin Risk pool Risk register Risk return ratio Risk–return spectrum...

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