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 20,000. The first outcome has the probability of 50%. The second outcome is 10,000 and the probability is 30%. The third outcome is -50,000 (a negative return) and it carries the remaining probability of 20%. What is the expected return on this investment?

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The Answer of 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 20,000. The first outcome has the probability of 50%. The second outcome is 10,000 and the probability is 30%. The third outcome is -50,000 (a negative return) and it carries the remaining probability of 20%. What is the expected return on this investment?

Consider Investing into a Project That Can Result in One