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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, Palmer

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.

Palmer Heights
Yearly Aftertax Cash Inflow (in thousands) Probability
$ 130 0.1
135 0.2
150 0.4
165 0.2
170 0.1
Crenshaw Village
Yearly Aftertax Cash Inflow (in thousands) Probability
$ 135 0.2
140 0.3
150 0.4
160 0.1
  1. Find the expected cash flow from each apartment complex.

Note: Enter your answers in thousands (e.g, $10,000 should be enter as "10").

  1. What is the coefficient of variation for each apartment complex?

Note: Do not round intermediate calculations. Round your answers to 3 decimal places.

  1. Which apartment complex has more risk?

  1. multiple choice

Palmer Heights

Crenshaw Village

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