SCENARIO 5-11 There Are Two Houses with Almost Identical Characteristics Available for Available

question 108

Short Answer

SCENARIO 5-11
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 5-11, if you can invest 70% 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:

Course of Performance

Refers to the conduct between contracting parties that is consistently undertaken in the course of their business relationship, serving as an interpretative tool for their agreement.

Course of Dealing

The history of conduct between parties in a transaction, which can help interpret their agreement and obligations.

Perfect Tender Rule

a legal principle under the UCC that requires sellers to deliver goods that exactly meet the terms of the contract with the buyer.

Substantial Performance

A legal principle allowing a party to enforce a contract if they have fulfilled enough of its terms to warrant payment, even if there are minor breaches.