TABLE 5-7 There Are Two Houses with Almost Identical Characteristics Available for Available

question 139

Short Answer

TABLE 5-7
There are two houses with almost identical characteristics available for investment in two different neighborhoods with drastically different demographic composition. The anticipated gain in value when the houses are sold in 10 years has the following probability distribution:

-Referring to Table 5-7, if you can invest 90% of your money on the house in neighborhood A and the remaining on the house in neighborhood B, what is the portfolio expected return of your investment?

---

Definitions:

Aquatic Zone

Areas of water, either fresh or salt, that are home to a wide variety of plant and animal life, segmented into different habitats like lakes, rivers, and oceans.

Benthic Zone

The ecological region at the lowest level of a body of water including the sediment surface and some sub-surface layers.

Bathyal Zone

A marine environment zone that extends from the edge of the continental shelf down to about 4,000 meters, known for its limited light and considerable pressure.