- CFA Exams
- CFA Exam: Level II 2021
- Study Session 15. Alternative Investments
- Reading 39. Private Real Estate Investments
- Subject 5. The cost and sales comparison approaches to valuation
CFA Practice Question
Economic obsolescence could be caused by:
II. Overbuilding, creating an oversupply of homes.
III. Traffic, noise, flood zone, crime.
I. Drop in demand for real estate.
II. Overbuilding, creating an oversupply of homes.
III. Traffic, noise, flood zone, crime.
Correct Answer: I and II
III may cause locational obsolescence.
User Contributed Comments 0
You need to log in first to add your comment.