An llustration of total risk Discrete Distribution) ANNUAL CASH FLOWS: YEAR 1 PROPOSALA State Probability Cash Flow Deep Recession 05 $-3,000 Mild recession 25 1,000 Normal 40 5,000 Minor boom 25 9,000 Major Boom 05 13,00014-3 An Illustration of Total Risk (Discrete Distribution) ANNUAL CASH FLOWS: YEAR 1 PROPOSAL A State Probability Cash Flow Deep Recession .05 $ -3,000 Mild Recession .25 1,000 Normal .40 5,000 Minor Boom .25 9,000 Major Boom .05 13,000