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#4 given below. Assume that you can bet on or against any team (under those odds) and assume that there are no transaction costs to

#4
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given below. Assume that you can bet on or against any team (under those odds) and assume that there are no transaction costs to betting. Team, Odds, As a Percentage 1. Chicago White Stockings, 3-to-1, 25\% 2. Hartford Dark Blues, 4-to-1, 20\% 3. St. Louis Brown Stockings, 4-to-1, 20\% 4. Boston Red Stockings, 7-to-1, 12.5\% 5. Louisville Grays, 7-to-1, 12.5\% 6. New York Mutuals, 9-to-1,10\% 7. Philadelphia Athletics, 19-to-1, 5\% 8. Cincinnati Reds, 99-to-1,1\% Based on these numbers, what can we say? Select one: Each team is underrated and to do arbitrage we should bet against every team in the same proportions as the odds given of each team winning the champlonship. Each team is overrated and to do arbitrage we should bet against every team in the same proportions as the odds given of each team NOT winning the champlonship. The teams are overrated as a group and to do arbitrage we should bet against every team in the same proportions as the odds given of each team NOT winning the championship. The teams are overrated as a group and to do arbitrage we should bet against every team in the same proportions as the odds given of each team winning the championship. The teams are underrated as a group and to do arbitrage we should bet against every team in the same proportions as the odds given of each team NOT winning the championship. Each team is underrated and to do arbitrage we should bet against every team in the same proportions as the odds given of each team NOT winning the championship

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