- CFA Exams
- CFA Level I Exam
- Topic 9. Portfolio Management
- Learning Module 37. Economics and Investment Markets
- Subject 6. Commercial Real Estate
CFA Practice Question
Investment in commercial real estate is considered by some investors as part equity because ______
B. the property can be sold for a profit or loss when the lease expires.
C. rents can be subject to "upward only" restrictions.
A. the investment is very illiquid.
B. the property can be sold for a profit or loss when the lease expires.
C. rents can be subject to "upward only" restrictions.
Correct Answer: B
The potential for profit or loss, and the uncertainty related to this profit from redevelopment, adds an equity-like dimension to investment in commercial real estate.
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