0 -40% 1 2 3 -30% 4 5 6 7 -20% 17.6% 8 www -10% 0% - IRR: / PV(NOI+REV-DS) 10%- 20% 0.0% 15.0% 79.3% 3.1% 30% IRR: / PV(NOI+REV- DS) Minimum -32.373% Maximum 29.443% Mean 5.272% Std Dev 5.932% Values Errors 998 / 1000 2 0 -30% 1 2. 3 4 -20% 5 6 7 80.0% 8 -10% 0% 10% IRR: / PV(NOI+REV-DS) 20% 10.0% 15.0% 16.5% 3.5% 30% IRR:/ PV(NOI+REV- DS) Minimum -28.814% Maximum 22.129% Mean 5.239% Std Dev 5.952% Values 1000

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Related questions
Question

Using the two graphs:

a. What is the probability that investors will earn a return smaller than 10%?
b. What is the probability that investors will earn nominal positive return?

 

0
-40%
1
2
3
-30%
4
5
6
7
-20%
17.6%
8
www
-10%
0% -
IRR: / PV(NOI+REV-DS)
10%-
20%
0.0%
15.0%
79.3%
3.1%
30%
IRR: / PV(NOI+REV-
DS)
Minimum
-32.373%
Maximum
29.443%
Mean
5.272%
Std Dev
5.932%
Values
Errors
998 / 1000
2
Transcribed Image Text:0 -40% 1 2 3 -30% 4 5 6 7 -20% 17.6% 8 www -10% 0% - IRR: / PV(NOI+REV-DS) 10%- 20% 0.0% 15.0% 79.3% 3.1% 30% IRR: / PV(NOI+REV- DS) Minimum -32.373% Maximum 29.443% Mean 5.272% Std Dev 5.932% Values Errors 998 / 1000 2
0
-30%
1
2.
3
4
-20%
5
6
7
80.0%
8
-10%
0%
10%
IRR: / PV(NOI+REV-DS)
20%
10.0% 15.0%
16.5%
3.5%
30%
IRR:/ PV(NOI+REV-
DS)
Minimum
-28.814%
Maximum
22.129%
Mean
5.239%
Std Dev
5.952%
Values
1000
Transcribed Image Text:0 -30% 1 2. 3 4 -20% 5 6 7 80.0% 8 -10% 0% 10% IRR: / PV(NOI+REV-DS) 20% 10.0% 15.0% 16.5% 3.5% 30% IRR:/ PV(NOI+REV- DS) Minimum -28.814% Maximum 22.129% Mean 5.239% Std Dev 5.952% Values 1000
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