23. specific versus market risk. sassafras oil is staking all its remaining capital on wildcat exploration off the cte dhuile. there is a 10% chance

• 23. specific versus market risk. sassafras oil is staking all its remaining capital on wildcat exploration off the côte d’huile. there is a 10% chance of discovering a field with reserves of 50 million barrels. if it finds oil, it will immediately sell the reserves to big oil at a price depending on the state of the economy. thus, the possible payoffs are as follows: value of reserves per barrel value of reserves (50 million barrels) value of dryholes boom $4 $200,000,000 0 normal economy 5 250,000,000 0 recession 6 300,000,000 0 is sassafras oil a risky investment for a diversified investor in the stock market—compared, say, with the stock of leaning tower of pita, described in problem 15? explain. (lo11-4)