• Discuss the basic risk concept and its precise expression—sensitivity analysis and simulation
• Review two precise measures of risk measurement—standard deviation as an absolute measure and coefficient of variation as a relative measure of risk
• Understand the calculation and practical aspects of risk-adjusted discount rate (RADR) and
certainty-equivalent (CEs) as basic risk-adjusted techniques
• Explain the probability distribution approach to deal with risks
• Illustrate the decision-tree approach to evaluate risky investment proposals
• Outline the features relating to the methodology followed by Indian corporates to assess project risk and the relative significance assigned to different risk assessment techniques
