Question 8
What would be the fair price of a bet that pays 100 with a 20% probability, pays 80 with a 40% probability and pays 60 with a 40% probability?
84
48
52
76
What would be the fair price of a bet that pays 100 with a 20% probability, pays 80 with a 40% probability and pays 60 with a 40% probability?
84
48
52
76
Correct answer
76
Question 8 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.