Why is real estate not a productive choice of investment

Reference no: EM133377372

Question: Mark has a small business and he frequently dips into his savings to keep the firm afloat. He decides to invest all of his savings to maximize his returns over the next 5 years. He has a low to moderate level of risk tolerance and invests all his savings in real estate.

Why is real estate not a productive choice of investment for Mark?

a) Real estate investments decrease in value over time

b) Real estate has low marketability risk.

c) Real estate is the most liquid asset one can own.

d) Real estate is not a liquid investment option.

Reference no: EM133377372

Questions Cloud

What is the value of the stock today : what is the value of the stock today? Do not round intermediate calculations. Round your answer to the nearest cent

Person-focused pay is becoming more prevalent in companies : Person-focused pay is becoming more prevalent in companies; however, person-focused pay is not always an appropriate basis for compensation

What is the value of this abandonment option today : If you could sell the project at the end of the first year for $795,712, what is the value of this abandonment option today

Weighted average cost of capital or required rate of return : If the subsidiaries remit their revenues to the Australian parent at the end of each year, estimate the value of Perth international based on its 7.62 per cent

Why is real estate not a productive choice of investment : He has a low to moderate level of risk tolerance and invests all his savings in real estate. Why is real estate not a productive choice of investment for Mark

Discuss about the seven types of bad leadership : Which of these have you seen most frequently and why do you think that is the case? Share a personal example if possible.

Can you give three current issues that regionalism is facing : Can you give three current issues that regionalism is facing and explain and elaborate what is being done to "fix" it right now and what has been tried in past.

Workplace violence aggression and harassment : Explain your top three recommendations in terms of workplace violence aggression and harassment in relation to the case.

How much australian dollar will the exporter receive : How much Australian dollar will the exporter receive that is equivalent to 2 million INR after one year? (enter the whole number with no sign or symbol)

User Account

All Pages