In this scene from The Big Short, the traders illustrate the concept of risk/reward payoffs using Jenga blocks. When trying to determine which investments to approach, the safest returns (the blocks at the top) are the easiest to invest in, but they don’t offer much of a return because they are so safe. The investments that are a bit risker (the blocks at the bottom) are compensated with higher returns to compensate investors who take the risk.
Captain Sig Hansen joins Jon Stewart’s Daily Show to discuss life on an Alaska fishing boat. Hailed as the deadliest job in America, Hansen and his crew can earn tens of thousands of dollars in a matter of days so long as the crew is willing to risk their lives. Jon discusses safety on the boats and the motivation for why an individual would risk their lives.
Two potential sailors come aboard the Pequod to inquire about becoming joining the crew. Peleg asks why any man would want to become a sailor when the conditions are so rough. He works through the requirements of being a sailor to make sure the men are willing to undergo through strenuous conditions. The reason whalers were so well-paid at the time was because the risk of death aboard the ship.
Here’s a good interview from The Daily Show with Jon Stewart and the captain of a fishing boat on the show Deadliest Catch.
Cousin Eddie takes his savings and buries the money in metal coffee tins in the desert. When Clark Griswold losses all of his cash in Las Vegas, Eddie decides it is time to dig up the money to help Clark out.
Thanks to Adrian Fohr for the clip and description!
At Pulaski Academy in Arkansas, Kevin Kelley’s team never punts because he opts for high risk decisions because the probabilities are in his favor. He doesn’t believe in taking the risk averse method and he also believes in focuses on his team’s comparative advantage instead of just doing the traditional method.
Hanging more than 600 feet above 24 lanes of traffic for these guys is just another day at the office.