November 4th, 2011, 1:16 am
My professor assigned me an extra credit and I want to do it by using programming.Can anyone give me some hint how should I approach this problem using excel?You will likely need to use a programming language to complete this bonus problem, check it out below:You are given a unique investment opportunity. Starting with $1 of capital, you can choose a fixed proportion, f, of your capital to bet on a fair coin toss repeatedly for 1000 tosses.Your return is double your bet for heads and you lose your bet for tails.For example, if f = 1/4, for the first toss you bet $0.25, and if heads comes up you win $0.5 and so then have $1.5. You then bet $0.375 and if the second toss is tails, you have $1.125.Choosing f to maximize your chances of having at least $1,000,000,000 after 1,000 flips, what is the chance that you become a billionaire?All computations are assumed to be exact (no rounding), but give your answer rounded to 12 digits behind the decimal point in the form 0.abcdefghijkl