Standard deviation of net profit

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Reference no: EM1319051

A real estate broker purchased 3 two-bedroom houses in a depressed market for a combined cost of $71000. He expects the cleaning and repair cost on each house to average $3700, with a standard deviation of $1450. When he sells them, after subtracting texes and other closing costs, he expects to realize an average of $39000 per house, with a standard deviation of $1100. Find the expected value of the net profit and the standard deviation of the net profit.

Reference no: EM1319051

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