Mathematically, a fair bet has an expected return of:

Question

Quizplus · Accepted Answer

A fair bet has an expected return of zero, as the probability of winning and losing is equal and the payouts and costs are also balanced. If the expected return was anything above zero, it would mean that the bettor has an advantage over the house or the bookmaker, which would not make it a fair bet. If the expected return was anything negative or positive, but the exact return is known in advance with certainty, it would mean that the bet is not really a bet but rather a sure thing or an arbitrage opportunity, which is not a fair bet either.

Mathematically, a Fair Bet Has an Expected Return Of