Question 11
What is the fair price of a bet that pays 20 with 20% probability, 50 with 50% probability, and 90 with 30% probability?
36
56
66
46
What is the fair price of a bet that pays 20 with 20% probability, 50 with 50% probability, and 90 with 30% probability?
36
56
66
46
Correct answer
56
Question 11 of 25 in the IIT Madras BS Corporate Finance (Corporate Finance) Quiz 2 paper sat on 23 Nov 2025, in the September 2025 term (IIT M DEGREE AN EXAM QDB2 23 Nov 2025 NEW). It carries 4 marks.