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Calculating RoR given 3 basic Variables

  1. Dec 26, 2011 #1
    So I want to calculate Risk of ruin from this 3 variables.
    Unit of Investment
    ROI per Unit
    for simplification purposes let's assume it is a double or nothing scenario.
    I have only gotten this far.
    RoR to double up=100%-[Equity + (Roi.Equity)]

    This only applies when Capital= Unit of Investment
    I don't know what a full formula including capital and unit of ivesment variables would be.
    And what would the formula to calculate more advanced RoR values like RoR when your objective isn't to double up but to 1000x.
    What would the correct formula be?
  2. jcsd
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