Describing Risk ■ An Example Investment in offshore drilling exploration o Two outcomes are possible Success-the stock price increase from $30 to $40/share .Failure --the stock price falls from $30 to $20/share Chapter 5 Slide 9Chapter 5 Slide 9 Describing Risk ◼ An Example ⚫ Investment in offshore drilling exploration: ⚫ Two outcomes are possible ◆Success -- the stock price increase from $30 to $40/share ◆Failure -- the stock price falls from $30 to $20/share