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1-What is your annual return on investment for a rental property with the following income and expenses? Rent: $850 per month Expenses: $3700 Mortgage interest:

1-What is your annual return on investment for a rental property with the following income and expenses?

Rent: $850 per month
Expenses: $3700
Mortgage interest: $8000
Equity investment: $26000
Original mortgage: $101000
Market value: $111340

134%

34%

10.1%

37%

2-Rodney purchased a call option on Wildbear Industries stock with a $100 exercise price, for $2 per share, when the actual price of the stock is $97. If the price goes up to $103, what is his rate of return on investment?

6 percent

50 percent

100 percent

3 percent

3-Which fund would have the least expense ratio?

S&P 500 Index Fund

Global Total Return Fund

Dynamic Capital Appreciation Fund

Small Cap Growth Fund

4-In what way is your home an investment?

Home equity is a source of income.

Mortgage payments are like reinvesting dividends.

The sale of your home is a source of income.

Long-term equity growth in your home is a component of your wealth.

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