Question

My friend Tim is trying to open up a new business and needs a great deal of investment money to get off the ground. The business is a zoo by day, nightclub by night, in downtown. Tim has no experience in this industry, and has never run or owned a business before. Although my financial advisor, friends and family say I shouldn’t, I invested $300,000 in Tim’s business, because he seems pretty confident it will make millions some day, and I will get 10% of his profits.
a) What is the calculated risk? this should be a dollar amount.
b)In what risk level would you categorize this investment and why?