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Mostly, it is useful for inventory capital, where in actuality the tiny fraction devoted to capital is based on easy features which may be without difficulty projected from existing historical studies � expected really worth and you can difference. Those two prices from Kelly tiny fraction arrive somewhat practical, yet , a sensible means suggest a further multiplication from Kelly proportion by fifty% (we.age. half-Kelly).
An easy way to combat the brand new unknown exposure is always to purchase reduced than the Kelly criterion
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