CFA Practice Question

There are 255 practice questions for this topic.

CFA Practice Question

The key difference between the discount rates applied to the cash flows of equities and commercial real estate properties is the existence of a(n) ______.
A. credit premium
B. inflation premium
C. liquidity premium
Explanation: The liquidity premium provides additional compensation for the risk that the real estate investment may be very illiquid in bad economic times.

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