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(MANAGERIAL FINANCE) The possible returns from investing in BestMax share are as follows: State of Economy Probability of State of Economy Return if State Occurs

(MANAGERIAL FINANCE)

The possible returns from investing in BestMax share are as follows:

State of Economy Probability of State of Economy Return if State Occurs
Strong 0.26 96%
Normal 0.51 12%
Weak 0.23 -83%

Based on the above information, calculate the following for BestMax share:

(d) What is risk in the context of financial decision making? Explain.

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