CFA Practice Question

There are 195 practice questions for this study session.

CFA Practice Question

The main disadvantage of the cost approach is that:

A. It is hard to forecast what will happen in the future.
B. Investors are sometimes irrational.
C. It can be difficult to estimate the depreciation of a property that has much obsolescence or old.
Correct Answer: C

The approach is therefore most reliable for newer properties that have a relatively modern design in a stable market.

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