Real Estate Finance Midterm Keller

1665 Words Jun 12th, 2013 7 Pages
1. | Question : | (TCO A) Real estate is an appropriate investment vehicle for ______________________________ . | | | Student Answer: | | individuals, but not for institutions such as pension funds and life insurance companies | | | | institutions such as pension funds and life insurance companies, but not for individuals | | | | individuals and institutions, depending upon their time horizons and investment goals | | | | investors in debt instruments but not for investors in equity instruments | | Instructor Explanation: C is the correct answer | Chapter 1 - page 6-7 | | | | Points Received: | 5 of 5 | | Comments: | | | | 2. | Question : | (TCO A) Which of the following is least …show more content…
| | | Student Answer: | | $1,455,000 | | | | $1,464,000 | | | | $698,250 | | | | None of the above | | Instructor Explanation: B is the correct answer | Chapter 5 - page 100-101 | | | | Points Received: | 5 of 5 | | Comments: | | | | 5. | Question : | (TCO A,B,C) The measure of how well a property is designed to do the job it is intended to perform is called _________________ . | | | Student Answer: | | physical durability | | | | economic efficiency | | | | fabrication quality | | | | functional efficiency | | Instructor Explanation: D is the correct answer | Chapter 5 - page 98 | | | | Points Received: | 5 of 5 | | Comments: | | | | 6. | Question : | (TCO A,B,C) The revenue a property is expected to generate after adjusting for operating expenses, but before providing for debt service or income tax consequences, is ______________ . | | | Student Answer: | | net operating income | | | | effective gross income | | | | normalized gross income | | | | before-tax cash flow | | Instructor Explanation: A is the correct answer | Chapter 5 - page 104-106 | | | | Points Received: | 5 of 5 | | Comments: | | | | 7. | Question : | (TCO A,B,C) A property's desirability, relative to competing properties, is influenced by all of the following except ______________ . | | | Student Answer: | |

More about Real Estate Finance Midterm Keller