Tagged: Expected Value

How To Calculate EV (Expected Value) By Analysing Risk & Reward

Expected value or EV is a term used in finance and gambling to define the estimated return of a given situation based on enough iterations. For example if you bet $1 on a coin toss your EV would be 0 because you would win/lose 50% of the time and your loss would be $1 and your win potential would be $1 ($2 including your original stake). So in this simple...