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7. You are considering investing in a project with the following possible outcomes: Probability of Investment Occurrence States Returns State 1: Economic boom 15% State

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7. You are considering investing in a project with the following possible outcomes: Probability of Investment Occurrence States Returns State 1: Economic boom 15% State 2: Economic growth 45% 12% 5% State 3: Economic decline 25% 15% State 4: Depression -5% How much percentage of risk of the returns is involved for this investment?* 7.0% 43.6% O 6.6% 16.1% 16%

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