using this information, consider the three following real estate investment strategies, and rank them from…

using this information, consider the three following real estate investment strategies, and rank them from least to greatest according to how much profit they would likely make in this market, assuming that each of them purchased a house in this area at year 0. i. a house flipper, seeking to sell the house as soon as doing so becomes profitable, sells after 4 years. ii. a long - term investor, seeking to hold onto the house for a long time, sells after 23 years. iii. a moderate - term investor who will sell the house once it reaches a certain price, sells after 11 years. a. i, ii, iii b. ii, i, iii c. iii, i, ii d. each of them will make roughly as much profit as the others.

using this information, consider the three following real estate investment strategies, and rank them from least to greatest according to how much profit they would likely make in this market, assuming that each of them purchased a house in this area at year 0. i. a house flipper, seeking to sell the house as soon as doing so becomes profitable, sells after 4 years. ii. a long - term investor, seeking to hold onto the house for a long time, sells after 23 years. iii. a moderate - term investor who will sell the house once it reaches a certain price, sells after 11 years. a. i, ii, iii b. ii, i, iii c. iii, i, ii d. each of them will make roughly as much profit as the others.

Answer

Explanation:

Step1: Analyze house - flipper (I)

The house - flipper sells after 4 years. From the graph, the price change in 4 years may not lead to a large profit as the market may not have appreciated much in a short - term.

Step2: Analyze moderate - term investor (III)

The moderate - term investor sells after 11 years. There is likely to be more price appreciation compared to 4 years, as the market has had more time to grow.

Step3: Analyze long - term investor (II)

The long - term investor sells after 23 years. Over a long period, assuming a generally upward - trending real estate market (as is common in many cases), the price appreciation is likely to be the greatest among the three.

Answer:

A. I, III, II