Instruction 5 -Referring to Instruction 5

question 139

Short Answer

Instruction 5.3
There are two houses with almost identical characteristics available for investment in two different neighbourhoods with drastically different demographic composition. The anticipated gain in value when the houses are sold in 10 years has the following probability distribution:
Returns
$$\begin{array} { | c | c | c | } \hline \text { Probability } & \text { Neighbourhood A } & \text { Neighbourhood B } \\\hline 0.25 & - \$ 22,500 & \$ 30,500 \\\hline 0.40 & \$ 10,000 & \$ 25,000 \\\hline 0.35 & \$ 40,500 & \$ 10,500 \\\hline\end{array}$$
-Referring to Instruction 5.3,if you can invest half of your money on the house in neighbourhood A and the remaining on the house in neighbourhood B,what is the portfolio risk of your investment?

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Definitions:

Brain Damage

A physical injury or dysfunction of the brain that can result from accidents, medical conditions, or other causes, leading to cognitive, physical, or emotional impairments.

Blood Supply

The provision or transfusion of blood or its components to maintain adequate levels in the body, crucial for delivering nutrients and oxygen, and removing waste products.

Small-For-Date

A term used to describe a baby that is smaller than the usual size for the number of weeks of pregnancy.

Preterm

Refers to a baby born before 37 weeks of gestation, also known as premature birth.