2 Questions

7.(TCO 6) A shopping center has an annual net operating income of $1,025,000 and a capitalization rate of 10%. What is its value?

8.(TCO 7) An investment has the following range of outcomes and probabilities. Outcomes (Percent) Probabilities of Outcomes 5% .25 7% .50 12% .25 Calculate the expected value and the standard deviation (round to two places after the decimal point where necessary). A. Expected value = 7.75 Standard deviation = 2.59 Refer to Equation 17-1 Ki Pi KiPi 5% .25 1.25 7% .50 3.50 12% .25 3.00 KiPi 7.75