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Mrs . Dionne Jackson desires to invest a portion of her assets in rental property. She has narrowed her choices down to two apartment complexes,
Mrs Dionne Jackson desires to invest a portion of her assets in rental property. She has narrowed her choices down to two apartment complexes, Palmer Heights and Crenshaw Village. After conferring with the present owners, Mrs Jackson has developed the following estimates of the cash flows for these properties.
tablePalmer HeightsYearly Aftertax,,Cash Inflow inthousandsProbability,$Crenshaw Village,,Yearly Aftertax,,Cash Inflow inthousandsProbability,$
a Find the expected cash flow from each apartment complex.
Note: Enter your answers in thousands eg $ should be enter as
tablePalmer Heights,tableExpected Cash Flowin thousands$Crenshaw Village,$
b What is the coefficient of variation for each apartment complex?
Note: Do not round intermediate calculations. Round your answers to decimal places.
tabletableCoefficient ofVariationPalmer Heights,Crenshaw Village,
c Which apartment complex has more risk?
Palmer Heights
Crenshaw Village
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