This analogy was taken from An Economist Walks into a Brothel: And Other Unexpected Places to Understand Risk. The best part about the book are the interviews with people like prostitutes, big wave surfers and professional photographers who discuss ways they manage risk:
In An Economist Walks into a Brothel, Schrager equips readers with five principles for dealing with risk, principles used by some of the world's most interesting risk takers. For instance, she interviews a professional poker player about how to stay rational when the stakes are high, a paparazzo in Manhattan about how to spot different kinds of risk, horse breeders in Kentucky about how to diversify risk and minimize losses, and a war general who led troops in Iraq about how to prepare for what we don't see coming.
It starts off slowly, but stick with it. Highly recommended, and not just for finance students.
Reason podcast discussing book