Instruction 5 -Referring to Instruction 5

question 163

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,what is the total variance of value gain if you invest in both houses?

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Definitions:

Dysregulation

Dysregulation refers to the impaired ability to control or regulate emotional responses or physiological processes within the body.

HPA Axis

The hypothalamic-pituitary-adrenal axis, a complex set of direct influences and feedback interactions among the hypothalamus, the pituitary gland, and the adrenal glands, regulating stress response, mood, digestion, and energy usage.

Serotonergic System

Refers to the part of the nervous system that uses serotonin as a neurotransmitter, playing a key role in regulating mood, anxiety, and other functions.

Dopaminergic System

Refers to the neurotransmitter system in the brain that uses dopamine to transmit signals, playing a key role in reward, motivation, and motor control.