Instruction 5 -Referring to Instruction 5

question 11

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 90% 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?

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Definitions:

Animal Zygote

The initial cell formed when two gamete cells (egg and sperm) are joined by means of sexual reproduction, marking the beginning of a new organism's development.

Haploid Cell

A cell that contains a single set of chromosomes, half the diploid number, typical of gametes.

Gametes

Reproductive cells that unite during sexual reproduction to form a new organism.

Diploid Zygote

The cell formed when two haploid gametes (from each parent) merge during fertilization, containing two complete sets of chromosomes, one from each parent.