- 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
What is the rationale for the sales comparison approach?
B. In a relatively short period of time, comparable houses in the same area will always sell for the same price.
C. value of property is related to its ability to produce cash flow through sales.
A. An informed investor would never pay more for a property than other investors have recently paid.
B. In a relatively short period of time, comparable houses in the same area will always sell for the same price.
C. value of property is related to its ability to produce cash flow through sales.
Correct Answer: A
User Contributed Comments 1
| User | Comment |
|---|---|
| davidt876 | don't like the use of "never" in A - what about investor and user value? |