Adjusting For Risk In The Test Of Gambling Market Efficiency

Essay specific features

 

Issue:

Social Issues

 

Written by:

Juan R

 

Date added:

January 10, 2014

 

Level:

University

 

Grade:

A

 

No of pages / words:

15 / 4133

 

Was viewed:

2809 times

 

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Essay content:

We offer a new test of gambling efficiency that evaluates the risk and return of betting strategies relative to those of alternative investments. The method incorporates the well-documented Kelly criterion into the current method of investigation. The home-underdog bias of NFL games is reinvestigated with the tests indicating the bias is much less of an inefficiency than previously reported...
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An additional insight provided indicates a rationale for the favoritelongshot bias in horseracing. Correcting for risk-adjusted returns in the test of gambling market efficiency Mark Cuban, the flamboyant owner of the National Basketball Association's Dallas Mavericks, in a November 27th 2004 entry in his web blog, www...
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