- CFA Exams
- CFA Level I Exam
- Study Session 15. Alternative Investments
- Reading 39. Private Real Estate Investments
- Subject 5. The cost and sales comparison approaches to valuation
CFA Practice Question
Which approach is likely to be used to value a single-family home?
A. The income approach.
B. The cost approach.
C. The sales-comparable approach.
Explanation: Income is irrelevant, and sales data for reasonable comparables is available. This approach can give a good feel for the market.
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