Risk of ruin
Concept in gambling, insurance, and finance / From Wikipedia, the free encyclopedia
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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.