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6. Consider the following probability distribution of returns for a proposed project that involves a new ultrasound machine: State of the Rate of Return

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6. Consider the following probability distribution of returns for a proposed project that involves a new ultrasound machine: State of the Rate of Return Economy Probability of Occurrence Very poor 0.10 -10.0% Poor 0.20 0.0 Average 0.40 10.0 Good 0.20 20.0 Very good 0.10 30.0 In what situation is this risk relevant? 6. Consider the following probability distribution of returns for a proposed project that involves a new ultrasound machine: State of the Economy Probability of Occurrence Very poor 0.10 Rate of Return -10.0% Poor 0.20 0.0 Average 0.40 10.0 Good 0.20 20.0 Very good 0.10 30.0 In what situation is this risk relevant?

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