Market Making
Kelly Criterion
Medium
Kelly Fraction for an Even-Money Bet, Second Instance
An even-money bet wins with probability 0.60. What fraction of wealth does the Kelly criterion recommend wagering?
Quant interview-style problem · QS-XNF012
Question 5 of 62
An even-money bet wins with probability 0.60. What fraction of wealth does the Kelly criterion recommend wagering?
Think first. Use hints deliberately. Study the reasoning only when you need it.