- CFA Exams
- CFA Level I Exam
- Topic 8. Alternative Investments
- Learning Module 4. Real Estate and Infrastructure
- Subject 2. Real Estate Investment Characteristics
CFA Practice Question
The disadvantage of relying solely on the comparative sales approach to valuing real estate is that the approach:
B. relies on selling prices, not asking prices.
C. requires estimating a market capitalization rate.
D. works well only for new or relatively new buildings.
A. does not reflect the fact that every property is in some respect unique.
B. relies on selling prices, not asking prices.
C. requires estimating a market capitalization rate.
D. works well only for new or relatively new buildings.
Correct Answer: A
User Contributed Comments 2
| User | Comment |
|---|---|
| johntan1979 | D is for Cost Approach |
| schweitzdm | Thanks John |