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Using the above information, which kind of investor would likely turn the greatest profit in this market, given that each of

them purchased a house in this area at year 0?

a. A long-term investor, who wishes to hold onto the house for an extended period and rent it out in

the meantime.

b. A house flipper, who will sell the house as soon as the market increases its value.

C. A moderate-term investor, who will sell the house once it reaches a certain price.

d. A cautionary investor, who will sell the house in order to minimize losses as soon as the prices

begin to drop

Question

Sherlyn Cannon

Mathematics

18 January, 20:24

0 2 4 6 8 10 12 14 16 18 20 22 24 26 28

Using the above information, which kind of investor would likely turn the greatest profit in this market, given that each of

them purchased a house in this area at year 0?

a. A long-term investor, who wishes to hold onto the house for an extended period and rent it out in

the meantime.

b. A house flipper, who will sell the house as soon as the market increases its value.

C. A moderate-term investor, who will sell the house once it reaches a certain price.

d. A cautionary investor, who will sell the house in order to minimize losses as soon as the prices

begin to drop

+2

Answers (1)

Know the Answer?

Selina Harrell · Answer 1

The correct answer is A. A long-term investor, who wishes to hold onto the house for an extended period and rent it out in the meantime.

Step-by-step explanation:

This kind of investment is particularly attractive for long-term investors that are seeking for a predictable and steady return and that are not looking for a short-term big shot. As it is mentioned in the description, for taking full advantage the investor knows in advance that the property will also be rented while it increases its value.