Imo in any situation where you are choosing risk/reward preferences it’s important to consider how much different levels of reward will actually benefit your life. I think in most cases losing everything you own is going to be more bad than doubling your wealth is good, and so it’s a bad idea to only consider the alpha of an investment. Or it could be the other way around, maybe someone desperately needs to escape their shitty job, so for them a very risky investment that actually has lower effective value than the safe investment is the more rational choice.

Which isn’t to say discount EV entirely, that’s how you end up at bad decisions like buying a lottery ticket.