Discover how the Dutch Book Theorem reveals profit opportunities in betting and finance when probabilities are misjudged.

What Are Risk-Neutral Probabilities? Risk-neutral probabilities are probabilities of potential future outcomes adjusted for risk, which are then used to compute expected asset values. In other words, ...

Probability is a measure of the likelihood of events happening. The greater the proportion of times an event can happen the greater (or more likely) the probability. Events can be ordered by the ...