Mr. Sam Golff desires to invest a portion of his assets in rental property. He has narrowed his choices down to two apartment complexes, Palmer Heights and Crenshaw Village. After conferring with the present owners, Mr. Golff has developed the following estimates of the cash flows for these properties.

Palmer Heights

Yearly Aftertax Probability

Cash Inflow

(in thousands)

$ 60 .1

65 .2

80 .4

95 .2

100 .1

Crenshaw Village

Yearly Aftertax Probability

Cash Inflow

(in thousands)

$ 65 .2

70 .3

80 .4

90 .1

Find the expected cash flow from each apartment complex.

Palmer Heights:

Crenshaw Village:

What is the coefficient of variation for each apartment complex?

Palmer Heights:

Crenshaw Village: