Instruction 5-5
There Are Two Houses with Almost Identical Characteristics

question 142

Short Answer

Instruction 5-5
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
$$\begin{array} { | c | c | c | } \hline \text { Probability } & \text { Neighbourhood A } & \text { Neighbourhood B } \\\hline .25 & - \$ 22,500 & \$ 30,500 \\\hline .40 & \$ 10,000 & \$ 25,000 \\\hline .35 & \$ 40,500 & \$ 10,500 \\\hline\end{array}$$
-Referring to Instruction 5-5,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?

Understand the role of psychology in addressing human needs and potential.

Differentiate between various schools of thought within psychology and their views on human nature and behaviour.

Recognize the significance of cultural and evolutionary factors in shaping human behaviour.

Understand the complementary roles of various psychological approaches in explaining behavior and mental processes.