Came across this question a few years back at a sufficiently douchey invmnt mgmt company and wanted to see the reaction here. The question is this: You are managing a portfolio - would you rather A) gain 20% for 4yrs and then lose 50% in the fifth or B) lose 50% in the first year and gain 20% for the remaining four years. ...there was no further instruction given. Wanted to see how ET would respond. IMO, it's pretty straightforward, but apparently that's not the case, lol.