26
QuizMultiple Choice

Variable Investments — Quiz

Question 26 • Financial Math

Marlon buys a rental property. The rental income and property value can increase or decrease based on the real estate market. Is this a variable investment, and why or why not?

Answer
A
Yes, because it guarantees the return of the principal.
B
No, because it offers fixed income.
C
No, because it is risk-free.
D
Yes, because it has variable returns.

Explanation

A variable investment can gain or lose value, so its returns are not fixed or guaranteed. Marlon’s rental income and the property’s value can change with the real estate market, making it a variable investment. The correct choice is “Yes, because it has variable returns.”

AI-written and checked against the verified answer.

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