How Much Risk are You Willing to Take? Quantifying Your Risk Using VaR

“Yo, my man, how bad do you want it?
You know how many cats I threw the pitch, and they never caught it?
I told them to bring their lyric, but they never brought it
Scared to get ripped off, cheated, deleted, rejected and shorted?”
- From “How Bad Do You Want It” by KRS-One

KRS-One definitely favors risk takers. Maybe that’s how he earned his reputation as one of the greatest lyricists of all time. As you know, high risk comes hand in hand with high return. But the majority of us aren’t built so. According to…