n experiment can result in any of the outcomes 1, 2, or 3. (a) If there are two different wagers, with r1(1) = 1, r1(2) = 8, r1(3) = −10 r2(1) = 2, r2(2) = 12, r2(3) = −16. Is an arbitrage possible? Do not just answer a yes or no. Show your working.
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An experiment can result in any of the outcomes 1, 2, or 3.
(a) If there are two different wagers, with
r1(1) = 1, r1(2) = 8, r1(3) = −10
r2(1) = 2, r2(2) = 12, r2(3) = −16.
Is an arbitrage possible? Do not just answer a yes or no. Show your working.
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