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

question 52

Short Answer

SCENARIO 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 Scenario 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?

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Definitions:

Blinking

A rapid opening and closing of the eyelids which helps to spread tears across and remove irritants from the surface of the cornea and conjunctiva.

Squinting

The partial closing of one's eyes to improve focus or reduce light exposure, or a misalignment of the eyes where they do not aim simultaneously at the same point.

Ear Ossicles

Three small bones in the middle ear known as the malleus, incus, and stapes, which transmit sound vibrations to the inner ear.

Perilymph

A fluid in the inner ear. When this fluid moves, it activates hearing and equilibrium receptors.