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Suppose that a one-year project that requires an initial investment of $5 million has a 65% chance of generating $12 million income, a 5% chance
Suppose that a one-year project that requires an initial investment of $5 million has a 65% chance of generating $12 million income, a 5% chance of generating $7 million income, a 10% chance of generating $3 million income and a 20% chance of generating nothing.
Illustrate the cumulative probability distribution for this projects gains and losses [Feel free to draw the distribution by hand and paste a picture of it].
can you also draw a picture of the distribution?
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