RISK: FREQUENCY DISTRIBUTION, PROBABILITIES, AND EXPECTED VALUE Risk: Probabilities and Expected Value Scenario: You work for a private investment company that currently has numerous business investments in real estate development, restaurant franchises,
Michelle_Michy
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| | | Real Estate | | | | | | Just Hats |
| | | NPV | | Probability | | | | NPV | | Probability |
| | High | $ 5,000,000 | | 0.50 | | | High | $ 4,000,000 | | 0.65 |
| | Medium | $ 2,250,000 | | 0.35 | | | Medium | $ 2,700,000 | | 0.30 |
| | Low | $ 250,000 | | 0.15 | | | Low | $ 400,000 | | 0.05 |
| | | Cupcakes and so forth |
| | | NPV | | Probability |
| | High | $ 4,500,000 | | 0.45 |
| | Medium | $ 2,300,000 | | 0.35 |
| | Low | $ 310,000 | | 0.20 |
