Instruction 5 -Referring to Instruction 5

question 78

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 70% of your money on the house in neighbourhood A and the remaining on the house in neighbourhood B,what is the portfolio expected return of your investment?

---

Definitions:

African-Americans

A term used to refer to citizens or residents of the United States who have ancestry from any of the black populations of Africa.

Civil Rights Movement

A pivotal series of events and legislative changes, primarily during the 1950s and 1960s, aimed at ending racial segregation and discrimination against African Americans in the United States.

World War II

A global conflict that lasted from 1939 to 1945, involving most of the world's nations, including all of the great powers, eventually forming two opposing military alliances: the Allies and the Axis.

National Industrial Recovery Act

1933 law passed on the last of the Hundred Days; it created public-works jobs through the Federal Emergency Relief Administration and established a system of self-regulation for industry through the National Recovery Administration, which was ruled unconstitutional in 1935.