27) Which is the best answer with respect to the following two statements:

Statement #1: An investment is a commitment of current resources in the expectation of deriving greater resources in the future.

Statement #2: Financial markets are highly competitive. Thousands of intelligent and well-backed analysts instantly search the securities markets looking for the best buys. This competition means that we should expect to find few, if any, free lunches.

Which of the following is true?

1. Only Statement #1 is true

2. Only Statement #2 is true

3. Both Statement #1 and Statement #2 are true

4. Both Statement #1 and Statement #2 are false

28)Given the following: last year you bought an asset for $25, you sold it for $75 one year later, when you bought the asset you spent $65 to improve the asset. What is your rate of return on the asset over the year?