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SCENARIO 5-1 There Are Two Houses with Almost Identical Characteristics Available for Available

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SCENARIO 5-1
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: SCENARIO 5-1 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 5-1, if you can invest half of your money on the house in neighborhood A and the remaining on the house in neighborhood B, what is the portfolio risk of your investment?
-Referring to Scenario 5-1, if you can invest half of your money on the house in neighborhood
A and the remaining on the house in neighborhood B, what is the portfolio risk of your
investment?


Definitions:

Conditioned Stimulus

A previously neutral stimulus that, after association with an unconditioned stimulus, comes to trigger a conditioned response.

Unconditioned Stimulus

A stimulus that naturally and automatically triggers a response without the need for prior learning.

Conditioned Response

An automatic response established by training to an ordinarily neutral stimulus.

Conditioned Stimulus (CS)

A previously neutral stimulus that eventually elicits a conditioned response after being paired with the unconditioned stimulus.

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