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There are two houses with almost identical characteristics available for investment in two different neighborhoods with drastically different demographic composition. The anticipated gain in value

There are two houses with almost identical characteristics available for investment in two different neighborhoods with drastically different demographic composition. The anticipated gain in value when the houses are sold in 10 years has the following probability distribution:

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122) Referring to Table 5-7, what is the expected value gain for the house in neighborhood A?

123) Referring to Table 5-7, what is the expected value gain for the house in neighborhood B?

124) Referring to Table 5-7, what is the variance of the gain in value for the house in neighborhood A?

125) Referring to Table 5-7, what is the variance of the gain in value for the house in neighborhood B?

126) Referring to Table 5-7, what is the standard deviation of the value gain for the house in neighborhood A?

127) Referring to Table 5-7, what is the standard deviation of the value gain for the house in neighborhood B?

128) Referring to Table 5-7, what is the covariance of the two houses?

129) Referring to Table 5-7, what is the expected value gain if you invest in both houses?

130) Referring to Table 5-7, what is the total variance of value gain if you invest in both houses?

131) Referring to Table 5-7, what is the total standard deviation of value gain if you invest in both houses?

132) Referring to Table 5-7, if you can invest half of your money on the house in neighborhood A and the remaining on the house in neighborhood B, what is the portfolio expected return of your investment?

133) Referring to Table 5-7, if you can invest half of your money on the house in neighborhood A and the remaining on the house in neighborhood B, what is the portfolio risk of your investment?

134) Referring to Table 5-7, if you can invest 10% of your money on the house in neighborhood A and the remaining on the house in neighborhood B, what is the portfolio expected return of your investment?

135) Referring to Table 5-7, if you can invest 10% of your money on the house in neighborhood A and the remaining on the house in neighborhood B, what is the portfolio risk of your investment?

136) Referring to Table 5-7, if you can invest 30% of your money on the house in neighborhood A and the remaining on the house in neighborhood B, what is the portfolio expected return of your investment?

137) Referring to Table 5-7, if you can invest 30% of your money on the house in neighborhood A and the remaining on the house in neighborhood B, what is the portfolio risk of your investment?

138) Referring to Table 5-7, if you can invest 70% of your money on the house in neighborhood A and the remaining on the house in neighborhood B, what is the portfolio expected return of your investment?

139) Referring to Table 5-7, if you can invest 70% of your money on the house in neighborhood A and the remaining on the house in neighborhood B, what is the portfolio risk of your investment?

140) Referring to Table 5-7, if you can invest 90% of your money on the house in neighborhood A and the remaining on the house in neighborhood B, what is the portfolio expected return of your investment?

141) Referring to Table 5-7, if you can invest 90% of your money on the house in neighborhood A and the remaining on the house in neighborhood B, what is the portfolio risk of your investment?

142) Referring to Table 5-7, if your investment preference is to maximize your expected return while exposing yourself to the minimal amount of risk, will you choose a portfolio that will consist of 10%, 30%, 50%, 70%, or 90% of your money on the house in neighborhood A and the remaining on the house in neighborhood B?

143) Referring to Table 5-7, if your investment preference is to maximize your expected return and not worry at all about the risk that you have to take, will you choose a portfolio that will consist of 10%, 30%, 50%, 70%, or 90% of your money on the house in neighborhood A and the remaining on the house in neighborhood B?

144) Referring to Table 5-7, if your investment preference is to minimize the amount of risk that you have to take and do not care at all about the expected return, will you choose a portfolio that will consist of 10%, 30%, 50%, 70%, or 90% of your money on the house in neighborhood A and the remaining on the house in neighborhood B?
 

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