Question: Please help Question 5 30 pts 5. A real estate investor buys two properties. Monthly net income from the rst property (an apartment building) is
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Question 5 30 pts 5. A real estate investor buys two properties. Monthly net income from the rst property (an apartment building) is $1,800 times the number of apartments that are rented out, minus $1,500 in property taxes and maintenance expenses. The number of apartments that are rented out is a random variable, X, with mean 15 and standard deviation 2. Monthly net income from the second property (a parking lot) is sixty percent of revenue (the management company takes the other forty percent), minus $800 in property taxes and maintenance. Revenue is a random variable, Y, with mean $11,000 and standard deviation $300. The correlation between the number of apartments rented out (X) and revenue from the parking lot (Y) is 0.6. a. Calculate the real estate investor's expected monthly net income from these two properties: . INTEGER (NO DECIMALS). b. Compute the covariance from the correlation: . INTEGER (NO DECIMALS). c. Calculate the variance of monthly net income from these two properties: INTEGER (NO DECI MALS)
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