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Corporate Finance · Quiz 2 · 12 Apr 2026 · January 2026 term

Question 5: A risk-neutral investor is offered a bet: 20% chance to w…

Question 5

+4 marksOne correct option

A risk-neutral investor is offered a bet: 20% chance to win 500, 30% chance to win 200, and 50% chance to lose 100. What is the fair price of this bet?

  1. A

    90

  2. B

    100

  3. C

    110

  4. D

    120

Show answer

Correct answer

  • C

    110

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Question 5 of 25 in the IIT Madras BS Corporate Finance (Corporate Finance) Quiz 2 paper sat on 12 Apr 2026, in the January 2026 term (Corporate Finance 07 Apr 26). It carries 4 marks.

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