Expected value calculates average future investment returns based on outcome probabilities. In finance, expected value guides portfolio construction and when to sell assets with lower future value.

We propose a method for selling options that defies many myths around options selling. We analyzed options prices using statistical modelling and calculus to improve the "expected value" of trading ...

What if I say that starting a business is unnatural? The venture is always risky, and we’re so good at avoiding risks: Some say it's just the way our brains are wired. Fear of loss may be primal and ...

Peter Gratton, Ph.D., is a New Orleans-based editor and professor with over 20 years of experience in investing, risk management, and public policy. Peter began covering markets at Multex (Reuters) ...