Problem 13-18 Coefficient of variation and investment decision [LO13-1] Mr. Sam Golff desires to invest a...

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Problem 13-18 Coefficient of variation and investment decision[LO13-1] Mr. Sam Golff desires to invest a portion of his assets inrental property. He has narrowed his choices down to two apartmentcomplexes, Palmer Heights and Crenshaw Village. After conferringwith the present owners, Mr. Golff has developed the followingestimates of the cash flows for these properties. Palmer HeightsYearly Aftertax Cash Inflow (in thousands) Probability $ 60 .2 65.2 80 .2 95 .2 100 .2 Crenshaw Village Yearly Aftertax Cash Inflow(in thousands) Probability $ 65 .4 70 .2 80 .1 90 .3 a. Find theexpected cash flow from each apartment complex. (Enter your answersin thousands (e.g, $10,000 should be enter as "10").) b. What isthe coefficient of variation for each apartment complex? (Do notround intermediate calculations. Round your answers to 3 decimalplaces.) c. Which apartment complex has more risk? Palmer HeightsCrenshaw Village

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Answer a Palmer Heights Expected Cash Flow 020 60 020 65 020 80 020 95 020 100 Expected Cash Flow 80 Crenshaw Village Expected Cash Flow 040 65 020 70 010 80 030 90 Expected See Answer

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Problem 13-18 Coefficient of variation and investment decision[LO13-1] Mr. Sam Golff desires to invest a portion of his assets inrental property. He has narrowed his choices down to two apartmentcomplexes, Palmer Heights and Crenshaw Village. After conferringwith the present owners, Mr. Golff has developed the followingestimates of the cash flows for these properties. Palmer HeightsYearly Aftertax Cash Inflow (in thousands) Probability $ 60 .2 65.2 80 .2 95 .2 100 .2 Crenshaw Village Yearly Aftertax Cash Inflow(in thousands) Probability $ 65 .4 70 .2 80 .1 90 .3 a. Find theexpected cash flow from each apartment complex. (Enter your answersin thousands (e.g, $10,000 should be enter as "10").) b. What isthe coefficient of variation for each apartment complex? (Do notround intermediate calculations. Round your answers to 3 decimalplaces.) c. Which apartment complex has more risk? Palmer HeightsCrenshaw Village