Assess the Impact of Uncertainty (L.O.2): Karen Jones has an opportunity to sell her house for $90,000
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Assess the Impact of Uncertainty (L.O.2): Karen Jones has an opportunity to sell her house for $90,000 today, or she can rent her house for one year and then sell it. If it is rented, the present value of the rental profits plus the present value of the sale after one year and their probabilities are:
Required: Determine the following:
a. Expected value of the renting and selling a year later alternative.
b. Standard deviation of the renting alternative.
c. Coefficient of variation for the renting alternative.
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