14
RCMultiple Choice
Topic Test — Cumulative exam
Question 14 • ****Spring 2026 Financial Math - MA2007 MQS21QXV
The following graph represents real estate prices in a given area over a period of 28 years. 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?
Answer
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.