Consider Investing into a Project That with Three Possible Outcomes

Essay

Consider investing into a project that with three possible outcomes as indicated in the table below. What is the expected return and the standard deviation of the project?
$$\begin{array} { | l | l | l | l | } \hline & \text { Optimistic } & \text { Normal } & \text { Pessimistic } \\\hline \text { Probability } & 0.2 & 0.4 & 0.4 \\\hline \text { Return } & 500 & 100 & - 100 \\\hline\end{array}$$