CFA Practice Question

There are 136 practice questions for this study session.

CFA Practice Question

A commercial property's value is determined by key factors such as ______.

I. its tenants
II. its location
III. its interior decorations
IV. the state of the underlying economy
Correct Answer: II and IV

User Contributed Comments 3

User Comment
thebkr777 Can anyone explain?
JTuranyi thebkr777, for II. notes say that location is the single most important determinant of property value, while for IV. reading mentions that real estate market tends to be cyclical --> underlying economy in recession means falling prices and vice versa
davidt87 I. tenants can be kicked out (eventually) - so not a KEY factor

III. interior decorations can relatively cheaply be changed - again not a KEY facto
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