Consider Investing into a Project That Can Result in One

Essay

Consider investing into a project that can result in one of three possible outcomes. The first possible outcome is that the project will generate a return of 5,000. The first outcome has the probability of 40%. The second outcome is 15,000 and the probability is 20%. The third outcome is -5,000 and it carries the remaining probability of 40%. What is the expected return on this investment?