gambler's fallacy

CFA Level III
#1
  1. Gambler’s Fallacy in behavioral finance 2) Mean Reversion Spread Analysis in fixed income. 3) Contrarian Strategy in equity 4) Constant Mix Strategy in execution/rebalancing. 5) Tobin’s Q in Econ. Any similarity among them?
#2

they all have the letter e

#3

Mean Reversion

#4

I think that gamblers have no fallacy, the only problem is the limited availability of capital…Give me the CFA exam fees of 100.000 people and I’ll show you.

#5

Gamblers fallacy is due to small sample size. A man playing roulette sees black hit five times in a row and thinks red HAS to hit next. What he doesn’t understand is the odds are still 50/50 and not tilted in reds favor.

#6

Small sample size has nothing do with it. For a wheel that is not gamed by the casino , every spin has equal probability . regardless of sample size.