Modern and post-modern portfolio theory as applied to moneyline betting

Abstract Modern and post-modern portfolio theory were devised by Harry Markowitz (among others) for purposes of allocating some monetary resources among a number financial assets so as to strike suitable balance between risk expected return. The problem it addresses bears considerable resemblance one encountered in making “moneyline” bets on the outcomes contests sports like American football. In distributing allotted funds such bets, may be desired account risk. By introducing modifications, procedures employed modern allocation can adapted use distribution multiple bets. As case assets, most appropriate measures are ones semi-deviation or semi-variance that penalize only negative below-target returns. various illustrated compared applying them retrospectively moneyline college football “bowl” games from 2020 season.