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

question 91

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 your investment preference is to maximize your expected return and not worry at all about the risk that you must take,will you choose a portfolio that will consist of 10%,30%,50%,70%,or 90% of your money on the house in neighborhood A and the remaining on the house in neighborhood B?

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