An llustration of total risk Discrete Distribution) ANNUAL CASH FLOWS: YEAR 1 PROPOSAL B State Probability Cash Flow Deep Recession 05 $-1,000 Mild recession 25 2.000 Normal 40 5,000 Minor boom 25 8,000 Major Boom 05 11,00014-9 An Illustration of Total Risk (Discrete Distribution) ANNUAL CASH FLOWS: YEAR 1 PROPOSAL B State Probability Cash Flow Deep Recession .05 $ -1,000 Mild Recession .25 2,000 Normal .40 5,000 Minor Boom .25 8,000 Major Boom .05 11,000