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1.What does the term risk mean in the context of capital budgeting, to what extent can risk be quantified, and when risk is quantified, is

1.What does the term "risk" mean in the context of capital budgeting, to what extent can risk be quantified, and when risk is quantified, is the quantification based primarily on statistical analysis of historical data or on subjective, judgmental estimates?

oWhat are the three types of risk that are relevant in capital budgeting?

oHow is each of these risk types measured, and how do they relate to one another?

oHow is each type of risk used in the capital budgeting process?

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