Ricardo invested $⁢15,000 in a real estate fund. In the first year, the fund earned 8% In the second year, it lost 4% In the third year, the fund recovered and earned 6% Was Ricardo's return variable or not, and why?

Question

Revolt · Accepted Answer

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

Pretest

Ricardo invested $⁢15,000 in a real estate fund. In the first year, the fund earned 8% In the second year, it lost 4% In the third year, the fund recovered and earned 6% Was Ricardo's return variable or not, and why?

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