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Problem 13-18 Coefficient of variation and investment decision (LO13-1) Mr. Sam Goff desires to invest a portion of his assets in rental property. He has
Problem 13-18 Coefficient of variation and investment decision (LO13-1) Mr. Sam Goff 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. Go has developed the following estimates of the cash flows for these properties. er meight Yearly ATTA Ceah Intlow in thamanda Probability 59 99 100 Czunahew Village Yearly Artertex Cash Intlow [in thoamanda Deality 70 0.2 90 a. Find the expected cash flow from cach apartment complex. (Enter your answers in thousands (eg, $10,000 should be enter as "10"). Expected Cash Flow fin thousands 80 5 75 Pamer Heights Crenshaw Village b. What is the cocfficient of variation for cach apartment complexe (Do not round intermediate calculations. Round your answers to 3 decimal places. Coefficient of Variation Palmer Heights Crenshaw Village c. Which apartment complex has more risk? Palmer Heights O Crenshaw Village
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