The higher the risk, the greater the return — Are you sure? I disagree. I believe this is a misconception. Check why and give your opinion in the comments.

There is a myth in investing that “the more risk you take, the greater the expected return”. It's fallacious and a misconception.

Investing is much more about identifying asymmetries between 'expected value' and 'realized/current value' than about taking risks.

It's: how much do you expect the value of this asset to grow (with the increase of demand over its supply) vs how much is it currently priced by the market.

>There are very high-risk products that are currently poorly priced and offer a negative expected return.>While there are low-risk products, also currently poorly priced, with positive expected return.

It's all about EV/RV → Expected Value per Realized Value.

Thoughts?

What are the cryptocurrencies with higher positive asymmetry and better EV, in your opinion?

And what are the ones with higher negative asymmetry, with worse EV?

Why?

Illustrative picture made with AI.

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https://preview.redd.it/2108jmh6visa1.png?1024&format=png&auto=webp&s=9ac47d668d6d09cf7f78b9f06c806c04fc0e59b1