Question

ricardo invested $15,000 in a real - estate fund. in the first year, the fund returned 8%. in the second year, it lost 4%. in the third year, the fund recovered and earned 6%. was ricardos return variable or not, and why? not variable, because the returns were steady. not variable, because the principal was returned. variable, because the returns depended on the real - estate market performance. variable, because the returns were fixed each year

Explanation:

The return on a real - estate fund is influenced by the performance of the real - estate market. In this case, Ricardo's fund had different annual returns (8% gain, 4% loss, 6% gain), which shows that the returns are not fixed and depend on market conditions.

Answer:

C. Variable, because the returns depended on the real estate market performance