Part 6/8:
A potential solution arises in betting a fraction of one's total wealth, such as 1/10 or 1/5. This brings about a new expression for expected growth rates, leveraging the concept of a geometric mean that potentially stabilizes outcomes over time.
Maximizing Growth Rate with the Kelly Criterion
The quest for an optimal fraction continues, leading to a mathematical exploration of growth rates based on varying betting fractions. The Kelly Criterion provides a method to determine the ideal fraction to bet, aiming to maximize growth while minimizing risk.