Consider this example modified from Fudge (1950):

" Jim has recently won $50,000 in a lottery.  His friend Bob, a stockbroker, suggests that he invest in one of two stocks:  Company A at $5 per share and Company B at $10 per share.  Bob estimates future prices at $15 and $20, respectively, with a probability of 20% and 40%, respectively.  For simplicity, Jim may only invest in one stock.  What does Jim decide to do?

With the obvious lack of data, Jim resorts to BNT to solve his problem. 

Fudge’s Constant for financial operations based on Broker recommendations:

fc = probability * 3 < 1.0

The determination of Browness is found from:
Company A:

Br = .6 * e^(-0.1log(3))
Br =  .57

Company B: note that 3 * .4 > 1.0 so use 1.0

Br = 1.0 * e^(-0.1log(2))
Br =  .97

Because both values are much greater than 0.5, Bob's numbers are Very Brown.  Jim decides to put his money in a bank."

COMMENTARY

Fudge's Formulation of Browness can be described by the equation:

Br = fc : (a/b) < 1.0

in which  fc is Fudge's Constant,
a/b is the estimated gain or loss ratio,
and : (a colon) is the Brown Operator:   e^(-0.1log(x)) 

Fudge's formulas were first applied to the selection of financial alternatives. In this example, Fudge’s analysis does not allow proper separation of the alternatives. Comparing alternatives with very high Browness is further refined in the MBO extensions to the theory