CFA Practice Question

There are 136 practice questions for this study session.

CFA Practice Question

Investment in commercial real estate is considered by some investors as part equity because ______

A. the investment is very illiquid.
B. the property can be sold for a profit or loss when the lease expires.
C. rents can be subject to "upward only" restrictions.
Correct Answer: B

The potential for profit or loss, and the uncertainty related to this profit from redevelopment, adds an equity-like dimension to investment in commercial real estate.

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