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Suppose you are approached with the opportunity to invest in an oil drilling operation. It is a very risky investment and could lead to large

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Suppose you are approached with the opportunity to invest in an oil drilling operation. It is a very risky investment and could lead to large gains or large losses. The table below outlines the various possible outcomes of the test drilling and the associated returns if you invest. States of Nature Probabilities Returns No oil found 0.50 -60% Small amount of oil found 0.30 -10% Significant amount oil found 0.10 60% A real gusher! 0.10 250% What is the expected return on the oil drilling investment? Answer in percentage form and round to two decimal places (ie. X.YY)

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