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The obvious retort is that less information can mean ill-informed prices and investments, and consequent losses. To grow wealth, investors prefer that the market is sufficiently well informed to allow accurate parameter estimation but not so well informed that there is little remaining payoff variance and hence no attractive investment opportunity. The \u201cideal investment\u201d is a bet on a fair coin, because the probability of winning is not only \u201cknown,\u201d it is known to be 0.5, leaving the payoff from the bet with maximum possible variance.<\/jats:p>","DOI":"10.1287\/deca.2024.0243","type":"journal-article","created":{"date-parts":[[2025,11,6]],"date-time":"2025-11-06T16:24:35Z","timestamp":1762446275000},"page":"65-76","source":"Crossref","is-referenced-by-count":0,"title":["Bayesian Resolution of an Information Paradox in the Theory of Investment"],"prefix":"10.1287","volume":"23","author":[{"ORCID":"https:\/\/orcid.org\/0000-0002-7939-7762","authenticated-orcid":false,"given":"David","family":"Johnstone","sequence":"first","affiliation":[{"name":"University of Wollongong, Wollongong, New South Wales 2500, Australia; and University of Sydney, Sydney, New South Wales 2050, Australia"}]}],"member":"109","reference":[{"key":"B1","volume-title":"Estimation Risk and Optimal Portfolio Choice","author":"Bawa VS","year":"1979"},{"key":"B2","volume-title":"Asset Pricing","author":"Cochrane J","year":"2001"},{"key":"B3","doi-asserted-by":"publisher","DOI":"10.1016\/j.jfineco.2016.04.001"},{"issue":"1","key":"B4","first-page":"1","volume":"65","author":"Dye RA","year":"1990","journal-title":"Accounting Rev."},{"key":"B5","doi-asserted-by":"publisher","DOI":"10.1111\/j.1475-679X.2007.00249.x"},{"key":"B6","volume-title":"Bayesian Data Analysis","author":"Gelman A","year":"2004","edition":"2"},{"key":"B7","doi-asserted-by":"publisher","DOI":"10.1146\/annurev-financial-110716-032355"},{"key":"B20","doi-asserted-by":"crossref","unstructured":"Goldstein I, Yang L (2019) Good disclosure, bad disclosure.\n                      J. 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