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Mr . John Backster, a retired executlve, desires to Invest a portion of his assets In rental property. He has narrowed his cholces to two
Mr John Backster, a retired executlve, desires to Invest a portion of his assets In rental property. He has narrowed his cholces to two
apartment complexes, Windy Acres and Hillcrest Apartments. The anticipated annual cash Inflows from each are as follows:
a Find the expected value of the cash flow for each apartment complex. Enter the answers In thousands.
Windy Acres
Hillcrest Apartments
Expected cash flow
$
$
b What is the coefficlent of varlation for each apartment complex? Do not round Intermedlate calculatlons. Round the flnal answers
to decimal places.
c Which apartment complex has more risk?
Hillcrest Apartments
Windy Acres
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