Question 6
A person's utility function is
. If the person is indifferent between a risk-
free asset (X) yielding 5% and a risky asset (Y) with
% and
%, what is the coefficient of risk aversion (A)?
10.0
12.5
15.0
18.0
A person's utility function is
. If the person is indifferent between a risk-
free asset (X) yielding 5% and a risky asset (Y) with
% and
%, what is the coefficient of risk aversion (A)?
10.0
12.5
15.0
18.0
Correct answer
12.5
Question 6 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.