The following graph represents changes in the real estate market in a given area over a period of 28 years. 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
Answers: 1
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