Sally purchased a rental property for $756,000 today. She expects to receive rent of $480 per week over the following 12 months. She also expects the price of the property in 12 months' time would be as follows according to the probabilities. Probability 30% 50% 20% Property Price ($) 910,000 820,000 690,000 Using this information answer parts i) and ii) below Calculate the expected return for this property if Sally plans to sell the property in one year. (Round your answer to the nearest 0.01%) ( mr Calculate the standard deviation for Sally's investment if she plans to sell the property in one year.
Sally purchased a rental property for $756,000 today. She expects to receive rent of $480 per week over the following 12 months. She also expects the price of the property in 12 months' time would be as follows according to the probabilities. Probability 30% 50% 20% Property Price ($) 910,000 820,000 690,000 Using this information answer parts i) and ii) below Calculate the expected return for this property if Sally plans to sell the property in one year. (Round your answer to the nearest 0.01%) ( mr Calculate the standard deviation for Sally's investment if she plans to sell the property in one year.
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
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