Do you think the implied probability of real adverse events in question (5) is a good reflection of reality? As a benchmark for comparison, consider the Pakistani project value under the following extreme assumptions: (i) the probability of expropriation over a 5- year period is 70%, and (ii) if expropriated, the government will compensate AES for about 40% of the project's remaining value

Answer rating: 100% (QA)

The implied probability of real adverse events in question 5 is not explicitly mentioned so its diff... View the full answer