Critical Reasoning (CR) | Re: It is often incorrectly assumed that investing in real estate is safer

The passage says that it is no form of investing is 'safe', and profits are not guaranteed in any form ofinvestment.

A. The price of a property can be affected by many factors including the political stability and economic situation of its surroundingarea.
This is talking about the 'price' of a property, whereas the talk in the passage of profits. Hence,eliminated.

B. The real estate market behaves like any other with respect to predicting gains or losses for any giveninvestment.
Correct answer. According to author, any form of investment is equallyunpredictable.

C. Because property is a physical entity, it is always sold at a price higher than that at which it wasbought.
This is opposite to what the author is trying tosay.

D. Investing in the real estate market is complex and risky, and should be avoided at allcosts.
Out ofscope.

E. To ensure a profit in the real estate market, experienced investors build models of futurecircumstances.
Out of scope.
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Statistics : Posted by LamboWalker • on 17 Jan 2024, 01:30 • Replies 2 • Views 122

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