In today?s ?Intelligent Investor? column in the Wall Street Journal, columnist Jason Zweig draws some interesting parallels between buying into Facebook?s IPO and the famous ?St. Petersburg Paradox? game proposed in 1738 by Dutch-Swiss mathematician Daniel Bernoulli?
Facebook and the St. Petersburg Paradox
online.wsj.com
Investors thinking about Facebook should consider a mathematical riddle that shows how growth stocks can get overvalued so easily.
Source: http://risk.garven.com/2012/02/04/facebook-and-the-st-petersburg-paradox/
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