Financial Harm and the Universal Risk Test: Check

Opportunity cost, compounding losses, and a portable risk test for any risky spend.

Assessment

LessonProtection6 questions

Check

Get 5 of 6 correct to mark the lesson mastered.

1
Opportunity cost means:
Choices for question 1Tax on winsWhat the money could have done insteadHouse edgeLuck
2
Universal risk test =
Choices for question 2Age × team × luckProbability × magnitude × absorbabilityStake × chance × prize onlyWeekend wins minus losses
3
Daily $5 betting apps can harm because:
Choices for question 3$5 is always safeFrequency adds up and absorbability may be lowNo edge on small betsApps are free
4
EV from Reasoning unit plus this lesson tells you:
Choices for question 4Nothing newAverage loss AND whether your budget can take itOnly lottery mathHow to win parlays
5
The test also applies to risky non-gambling spends like:
Choices for question 5BNPL you might not pay offShirt colorHomework timeBoth A and C
6
Before spending, ask: (select all)
Choices for question 6How likely is the bad outcome?How big is the downside?Can I absorb it?Will I go viral?