How much risk is involved here

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A new project has an uncertain cash flow. A group meeting has resulted in a consensus that a reasonable way to view the possible risks and rewards is to say that the project will pay $50,000 with probability 0.2, will pay $100,000 with probability 0.3, will pay $200,000 with probability 0.4, and will pay $400,000 with probability 0.1.

How much risk is involved here? Please give both the name and the numerical value of your answer.

Reference no: EM131805447

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