Question 1
Asset A
Asset B
Robert is indifferent between the two assets
Information is not sufficient.
Question 2
What would be the fair price of a bet that pays 2 with a 25% probability, pays 4 with a 50% probability and pays 8 with a 25% probability?
4
4.5
5
5.5
Question 3
Suppose a 1-year government bond is offering a 10% rate of return. Ankit has Rs 10,000, which he can invest in government bonds or lend to his friend Suresh. He believes that Suresh will pay back the promised amount with an 80% probability and will pay back nothing with a 20% probability. What is the default premium that Ankit should ask from Suresh?
37.50%
27.50%
17.50%
10.00%
22 more questions in this paper
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More on the Corporate Finance Quiz 2 1 Dec 2024 paper
The IIT Madras BS Corporate Finance (Corporate Finance) Quiz 2 paper sat on 1 Dec 2024, in the September 2024 term: 25 questions for 25 marks in 120 minutes. The first 3 questions are below. Sign in with Google — it is free — to see the whole paper with its answers and explanations, in learning mode or as a timed mock test.
| Feature | Corporate Finance Quiz 2 1 Dec 2024 at a glance |
|---|---|
| Term | September 2024 term |
| Subject | Corporate Finance |
| Course code | BSMS3034 |
| Questions | 25 |
| Marks | 25 |
| Duration | 120 min |
| MCQ | 25 |
| Official paper | IIT M DEGREE AN EXAM QDB2 01 Dec 2024 |
| Negative marking | No negative marking. |
| Updated |