Kizspy | Question: 74
(Choose 1 answer)
(See picture)
A. $33,850
B. $40,750
C. $54.100
D. $47,250
E. None of the other choices is correct
FUOVERFLOW
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
Probability Neighborhood A
Neighborhood B
0.25 -$22,500
$30,500
0.40 0.35 $10,000$40,500
$25,000$10,500
What is the expected value gain if you invest in both houses?
