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Corporate Finance · End Term · 10 May 2026 · January 2026 term · Set 1

Question 35: A project is expected to have a payoff of Rs 5,000 in on…

Question 35

+4 marksNumerical answer

A project is expected to have a payoff of Rs 5,000 in one year. The beta for the project is 1.5. If the risk-free rate is 4% and the expected market return is 10%, what should be the price (in Rs) for the project according to CAPM? (Round off to the nearest integer)

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Correct answer: 4425 (accepted within ±5)

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Question 35 of 35 in the IIT Madras BS Corporate Finance (Corporate Finance) End Term paper sat on 10 May 2026, in the January 2026 term (Corporate Finance 06 May 26). It carries 4 marks.

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