Defin Risk. How we can go for Expected value computation?
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Risk is the possibility of losing something of value. Values (such as physical health, social status, emotional well-being, or financial wealth) can be gained or lost when taking risk resulting from a given action or inaction, foreseen or unforeseen (planned or not planned).
1.Identify all possible outcomes. ...
2.Assign a value to each possible outcome. ...
3.Determine the probability of each possible outcome. ...
4.Multiply each value times its respective probability. ...
5.Find the sum of the products. ...
Interpret the result.
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