Initial capital needed to survive in a minimum chance scenario

Input(s)

Z: Number of Standard Deviation corresponds to a Certain Change (dimensionless)

σ\sigma: Standard Deviation of a Risky Job reduced to Present Value (fraction)

XEX_{E}: Present Worth Expectation per a Risky Job ($)

Output(s)

MG\mathrm{M}_{\mathrm{G}}: Initial Capital Needed to Survive in a Minimum Chance Scenario (dimensionless)

Formula(s)

MG=(Zσ)24XE\mathrm{M}_{\mathrm{G}}=\frac{(\mathrm{Z} \cdot \sigma)^{2}}{4 \mathrm{X}_{\mathrm{E}}}

Reference(s)

Serpen, U., Petroleum Economics, Course Notes, ITU Petroleum and Natural Gas Engineering, Istanbul, Turkey, (2008) Page: 99.


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