This document discusses an exercise where participants make a series of investment decisions based on different scenarios involving levels of risk. In the first scenario, most participants required a past success rate of between 65-80% before investing. When it was revealed the investment was oversubscribed, most lowered their required success rate. Finally, when participants learned their child needed an expensive medical treatment, most further lowered the success rate they required before investing, showing how risk tolerance changes based on new information and circumstances. The exercise demonstrates how perceptions of risk are influenced by multiple real-world factors.