SCENARIO 5-3
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:
-Referring to Scenario 5-3, what is the variance of the gain in value for the house in neighborhood
A?

Question

SCENARIO 5-3
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: 
-Referring to Scenario 5-3, what is the variance of the gain in value for the house in neighborhood
A?

Quizplus · Accepted Answer

The Answer of SCENARIO 5-3
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: 
-Referring to Scenario 5-3, what is the variance of the gain in value for the house in neighborhood
A?

SCENARIO 5-3 There Are Two Houses with Almost Identical Characteristics Available for Available