Any individual posted a remark about sunk value fallacy in one other submit on this sub and it bought me questioning, what % acquire do you should recoup a loss. With a purpose to momentarily transmogrify us all into bears, I did some math.
I got here up with this components: %GRTR = 100 * (100 / (100 – X) – 1)
The place X is %loss and %GRTR is %acquire required to recoup the loss
From 0<X<10, X tails %GRTR intently…
| X | %GRTR |
|---|---|
| 1 | 1.01 |
| 2 | 2.04 |
| 3 | 3.09 |
| 4 | 4.17 |
| 5 | 5.26 |
| 7.5 | 8.11 |
| 10 | 11.11 |
…sadly, issues worsen from 10<X<50…
| 15 | 17.65 |
|---|---|
| 20 | 25.00 |
| 25 | 33.33 |
| 30 | 42.86 |
| 35 | 53.85 |
| 40 | 66.67 |
| 45 | 81.82 |
| 50 | 100.00 |
…and %GRTR approaches infinity as X goes in direction of 100.
| 60 | 150.00 |
|---|---|
| 70 | 233.33 |
| 80 | 400.00 |
| 90 | 900.00 |
| 100 | undefined |
Please (bear) this in thoughts in case you're watching investments underperform. The outlet will get asymptotically worse the deeper you maintain, and there's no assure the safety bounces again. To cite world-famous drug addicted peasant Duncan Trussell, "Hope kills!"
Right here's some graphs I'm going to attempt to hyperlink and hopefully not get flagged and eliminated for. If somebody good on the maths can test the components I'd recognize it.
submitted by /u/Painty_The_Pirate
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