If you’re looking for different ways to weigh your options, we offer you a useful technique to consider: it’s called expected value analysis. This simple approach packs a powerful punch.
- Read: I was recently introduced to Todd Tresidder of the Financial Mentor, and have found in him some very valuable resources. On this month’s theme of expected value, his article on Are You Gambling or Investing? guides the reader in learning how to profit more consistently by using an investment strategy with a house advantage.
- Listen: Additionally from Todd is this podcast on Expected Value Formula: The Missing Key to Building Wealth with Billy Murphy. Wealth is built by calculating expectancy, an approach of weighing the payoff by the probability of success.
- Watch: For the visual math learner, this video takes you step-by-step in understanding the expected value, using a wheel spinner as an example.
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You can click on the links below to access this month’s resources. Thanks for reading, listening, and watching!