Multiple choices 32/50
(Choose 1 answer)
(See picture)
A. -190.040.000
B. 203,750,000
C. -203,750,000
D. 190,040,000
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:
Returns
Neighborhood A
Neighborhood B
Probability
0.25
0.40
0.35
-$22.500
$10,000
$30,500$25.000
Next
$40,500
$10,500
What is the covariance of the two houses?
