Kelly Fraction for an Even-Money Bet, Second Instance

For an even-money bet, the Kelly fraction is $f^{\ast }=p-q$.

Here $p=0.6$ and $q=0.4$.

1. 1. Apply the even-money Kelly formula

   $f^{\ast }=p-q=2p-1$.

2. 2. Compute

   $f^{\ast }=2(0.6)-1=0.2$.

   $$f^{\ast }=0.20$$

Answer: 0.20