Dismiss Notice
Join Physics Forums Today!
The friendliest, high quality science and math community on the planet! Everyone who loves science is here!

Calculating RoR given 3 basic Variables

  1. Dec 26, 2011 #1
    So I want to calculate Risk of ruin from this 3 variables.
    Capital
    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.
    Thanks
    What would the correct formula be?
     
  2. jcsd
Know someone interested in this topic? Share this thread via Reddit, Google+, Twitter, or Facebook

Can you offer guidance or do you also need help?
Draft saved Draft deleted