CFA Practice Question

There are 195 practice questions for this study session.

CFA Practice Question

In the formula used by the NCREIF Property Index, Return = (NOI - Capital expenditures + Ending market value - Beginning market value)/ Beginning market value, the capital gain component is:
A. (NOI - Capital expenditures + Ending market value - Beginning market value)/ Beginning market value.
B. (-Capital expenditures + Ending market value - Beginning market value)/ Beginning market value.
C. (Ending market value - Beginning market value)/ Beginning market value.
Explanation: The income return is NOI/ Beginning market value.

User Contributed Comments 1

User Comment
alejandroc Take into consideration Capex as a cost in NCREIF
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