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Corporate Finance · Quiz 2 · 16 Mar 2025 · January 2025 term

Question 5: If the utility function of an individual is a linear func…

Question 5

+4 marksOne correct option

If the utility function of an individual is a linear function over wealth, what can we say about the individual’s risk attitude?

  1. A

    The individual is risk neutral

  2. B

    The individual is risk averse

  3. C

    The individual is risk lover

  4. D

    None of the other options

Show answer

Correct answer

  • A

    The individual is risk neutral

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Question 5 of 25 in the IIT Madras BS Corporate Finance (Corporate Finance) Quiz 2 paper sat on 16 Mar 2025, in the January 2025 term (IIT M DEGREE AN EXAM QDB2 16 Mar 2025). It carries 4 marks.

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