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Corporate Finance · Quiz 2 · 23 Nov 2025 · September 2025 term

Question 19: What is Anjali’s expected utility from the venture?

Question 19

+4 marksOne correct option

Anjali, an entrepreneur, has a utility function of the form
. If her new product is successful, she expects to earn 1,600 units. If it fails, she will earn 400 units. There is a 40% chance that her product will fail.
Based on the above data, answer the given subquestions.

What is Anjali’s expected utility from the venture?

  1. A

    40

  2. B

    36

  3. C

    32

  4. D

    24

Show answer

Correct answer

  • C

    32

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Question 19 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.

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