Academic Integrity: tutoring, explanations, and feedback — we don’t complete graded work or submit on a student’s behalf.

Suppose that bookies face increased criminal penalties from taking bets, and tha

ID: 3396031 • Letter: S

Question

Suppose that bookies face increased criminal penalties from taking bets, and that as a result they demand an increase in their commission. Specifically, you now must wager $9 in order to win $7 when spread-betting. What is the highest probability you can win in your spread bets using a given strategy without violating strict efficiency of the betting market? Explain your answer/show your work. What is the highest probability you can win in your spread bets using a given strategy without violating weak efficiency of the betting market? Explain your answer/show your work.

Explanation / Answer

a)

probability will be 7/9 = 0.778

Hire Me For All Your Tutoring Needs
Integrity-first tutoring: clear explanations, guidance, and feedback.
Drop an Email at
drjack9650@gmail.com
Chat Now And Get Quote