Page 56 - Economic Damage Calculations

variability risk. The risk of outcomes varying from the expected value, with values both above and
below the expected value. The further the range of possible outcomes from the expected value,
and the greater the weight of the "tails" (representing a greater possibility of outcomes far from
the expected value), the lower the value to an investor, given risk aversion.

weighted average cost of capital. The cost of capital (discount rate) determined by the weighted
average, at market value, of the cost of all financing sources in the business enterprise’s capital
structure. fn 23

wrongdoer's rule. The idea that a "wrongdoer may not object to the plaintiff’s reasonable estimate
of the cause of injury and of its amount, supported by the evidence, because not based on more
accurate data which the wrongdoer’s misconduct has rendered unavailable." fn 24

fn 23 Ibid.

fn 24 Bigelow v. R.K.O. Pictures, Inc., 327 U.S. 251 (1946).

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