There are many risk-adjusted performance metrics, each describing a different facet of risk, with some better than others: To accurately measure investment risk and prevent falling for the Ludic Fallacy, all four statistical moments must be taken into account-mean (i.e., expected return), variance (i.e., beta), skewness and kurtosis-across a minimum of one complete market cycle (i.e., January 2007 to present).
The point is that regardless of your feelings about the variables associated with any bet and by extension any investment, math (when applied properly) is the only clear, objective and accurate standard of evaluation. For a basic introduction to the concept of risk-adjusted performance, take a look at the example of a coin toss that I used in this video.
