Question

Your friend is asking you to invest in his bakery, and you have 35000. The returns are volatile, and you may get either 43000 with a probability of 0.44 or 27000 with a probability of 0.56.

Answer 1

$$E(X)=(43000-35000)(0.44)$$

$$+(27000-35000)(0.56)=-960$$

It is expected that you will lose 960.