9. (Betting wheel) Consider a general betting wheel with segments The payoff for a $1 bet on...

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9. (Betting wheel) Consider a general betting wheel with segments The payoff for a $1 bet on a segment is A, Suppose you bet an amount B, 1/A, on segment i for each i Show that the amount you win is independent of the outcome of the wheel. What is the risk-free rate of return for the wheel? Apply this to the wheel in Example 67.

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Investment Science

ISBN: 9780195391060

1st International Edition

Authors: David G. Luenberger

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