Open Access. Powered by Scholars. Published by Universities.®
Articles 1 - 2 of 2
Full-Text Articles in Business
Analyzing The Efficiency Of Response To News Regarding Legalization Of Sports Wagering, Kevin Krieger, Justin L. Davis
Analyzing The Efficiency Of Response To News Regarding Legalization Of Sports Wagering, Kevin Krieger, Justin L. Davis
International Conference on Gambling & Risk Taking
A landmark decision (Murphy v. NCAA) by the Supreme Court of the United States (SCOTUS) in 2018 ruled the federal government could not prohibit states from allowing sports wagering. While the implications of this decision are far reaching at both an industry and societal level, our study assesses the market response to information available throughout the various phases leading up to this decision by SCOTUS. The timeline of events preceding the SCOTUS decision is tracked, and stock performances of relevant, publicly traded firms are analyzed across three inflection points. Findings suggest the market failed to adequately acknowledge key …
Kelly Fraction Estimation For Multiple Correlated Bets, William Chin
Kelly Fraction Estimation For Multiple Correlated Bets, William Chin
International Conference on Gambling & Risk Taking
It is well-known that expected portfolio growth is maximized by maximizing
expected logarithmic utility. This investment criterion is known as Kelly betting.
It has many optimality properties but is considered to be risky. Blackjack
teams and other advantage gamblers practice a fraction of the Kelly optimal to
decrease risk. Some hedge fund managers are thought to practice according to
Kelly principles. We use a continuous multivariate Geometric Brownian motion
model and present an interval estimate for the historical fraction for a portfolio
of correlated bets, possibly including a risk-free asset. Historical data comes
from a range of sources and the …