Overround on a three-way soccer market
A bookmaker prices a soccer match (three outcomes: home, draw, away) at decimal odds of , , and .
What is the overround, what does the bookmaker hold on a balanced book, and what fair probabilities is it implying for each outcome?
Show a hint
Same recipe as a two-way market, just three implied probabilities to add. A fair three-way book sums to .
Your answer
This one is open-ended. Work it through, then check your reasoning against the full solution.