CFA Practice Question

CFA Practice Question

Which of the following is most likely not a feature of the Cost Approach to real estate valuation?
A. May be inaccurate measure of market value, as market value minus cost of land may be quite different from construction cost of building.
B. Easy to implement as apprised values that accurately reflect market value are readily available.
C. Value is cost of building an equivalent property plus value of land.
Explanation: Apprised values may not accurately reflect market values, and may be difficult to obtain.

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