AIR MATH

Math Question

There is a \( 40 \% \) chance that you will lose \( \$ 25,000 \) if you invest in a company, but there is a \( 25 \% \) chance that you will break even and a \( 35 \% \) chance that you will
make \( \$ 40,000 \).
What is the expected value of the investment?

Solution

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