Return On Investment

In DEPTH teaches students the equations used in Bond Pricing so that they can assess the real value they place on their life and/or freedom by participating in illegal activities (such as drug dealing). Students also learn algebra, probability and statistics, business concepts and logical problem solving.

HOW MUCH IS THE FREEDOM AND LIFE OF A DRUG DEALER WORTH IN DOLLARS?

Now that you have looked at all of the risks involved in the drug dealing business, let's see what value you are or would be giving to your life or freedom if you participated in this activity. Here are a couple of questions to ask yourself. How much is your life worth? How much money would you want in exchange for spending some time in jail?

In economics there is a formula which is called "Expected Value." It's a way to determine a value you give to something today. The Expected Value is equal to Expected Return or Return on Investment. The formula looks like this:

EXPECTED VALUE (Return) = RISK x VALUE YOU GIVE TO SOMETHING TODAY

Expected Value (EV) would equal the amount of money you make or might think you would make during a given period of time.

Risk would be the percentage of chance you would have of being put in jail, becoming addicted, being hurt or even killed.

Value would be the amount in dollars you place on something: your life, your body, or your freedom.

People may not think they are putting a value on their freedom or life if they do something illegal like deal drugs.

Jail and death are real risks and possibilities in the drug dealing business, and a drug dealer needs to consider them.

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