Question 1

As of 2015, the single largest asset category in the net worth portfolios of households is:

Accepted Answer

A)   government and corporate bonds
B)   stocks and mutual fund shares
C)   consumer durable goods
D)   housingE) A) and D)
F) None of the above

Question 2

Each property has unique features, whether it is its age, the building design of its structures, or its location. As such, real estate markets consist of assets that are considered:

Accepted Answer

A)   homogeneous
B)   heterogeneous
C)   substitutes
D)   complementsE) All of the above
F) A) and D)

Question 3

Especially in terms of retail properties, which of the following attributes is considered the most likely to result in drastic value differences between otherwise similar properties?

Accepted Answer

A)   Structural attributes
B)   Financing attributes
C)   Location attributes
D)   Land attributesE) B) and D)
F) A) and D)

Question 4

By the fourth quarter of 2015, U.S. households had accumulated $12.5 trillion in housing equity, which represents about 14 percent of their net worth. What proportion of U.S. households own their home?

Accepted Answer

A)   one-third
B)   one-half
C)   two-thirds
D)   three-fourthsE) B) and C)
F) None of the above

Question 5

Equity investors can choose to participate indirectly in real estate markets by purchasing shares in publicly traded real estate companies. In doing so, investors benefit from all of the following EXCEPT:

Accepted Answer

A)   Low transaction costs
B)   Risk sharing amongst investors
C)   Highly segmented markets
D)   High information efficiencyE) A) and B)
F) A) and C)

Question 6

If a property's expected annual net income is $89,100 and its current market value is $1,060,000, the property's capitalization rate is:

Accepted Answer

A)   4.2%
B)   8.4%
C)   11.9%
D)   33.6%E) None of the above
F) A) and B)

Question 7

Real estate consists of the physical structures and infrastructure that accompany the land. All of the following are examples of an improvement to the land EXCEPT:

Accepted Answer

A)   Walkways
B)   Building
C)   Sewer system
D)   StreetsE) A) and B)
F) None of the above

Question 8

If we desire to classify land by its use, land that does not include any improvements to the land would be categorized as:

Accepted Answer

A)   "Raw" land
B)   Building site
C)   Developed land
D)   Property infrastructureE) None of the above
F) A) and D)

Question 9

All of the following are examples of an improvement on the land EXCEPT:

Accepted Answer

A)   Fences
B)   Building
C)   Walls
D)   StreetsE) C) and D)
F) B) and C)

Question 10

Considered a fundamental pricing metric in commercial real estate markets, the ratio of a property's annual net income to its market value is more commonly referred to as a(n) :

Accepted Answer

A)   Appreciation rate
B)   Capitalization rate
C)   Discount rate
D)   Internal rate of returnE) All of the above
F) None of the above

Question 11

Capital markets can be divided into four main categories: private equity, public equity, private debt, and public debt. An example of a real estate asset that trades in the private equity market is:

Accepted Answer

A)   real property
B)   home mortgages
C)   equity REITs
D)   mortgage backed securitiesE) A) and B)
F) B) and D)

Exam 1: The Nature of Real Estate and Real Estate Markets

Real estate consists of the physical structures and infrastructure that accompany the land. All of the following are examples of an improvement to the land EXCEPT:

Correct Answer
verified

Considered a fundamental pricing metric in commercial real estate markets, the ratio of a property's annual net income to its market value is more commonly referred to as a(n) :

Correct Answer
verified

Especially in terms of retail properties, which of the following attributes is considered the most likely to result in drastic value differences between otherwise similar properties?

Correct Answer
verified

By the fourth quarter of 2015, U.S. households had accumulated $12.5 trillion in housing equity, which represents about 14 percent of their net worth. What proportion of U.S. households own their home?

Correct Answer
verified

If a property's expected annual net income is $89,100 and its current market value is $1,060,000, the property's capitalization rate is:

Correct Answer
verified

Capital markets can be divided into four main categories: private equity, public equity, private debt, and public debt. An example of a real estate asset that trades in the private equity market is:

Correct Answer
verified

If we desire to classify land by its use, land that does not include any improvements to the land would be categorized as:

Correct Answer
verified

All of the following are examples of an improvement on the land EXCEPT:

Correct Answer
verified

Equity investors can choose to participate indirectly in real estate markets by purchasing shares in publicly traded real estate companies. In doing so, investors benefit from all of the following EXCEPT:

Correct Answer
verified

Each property has unique features, whether it is its age, the building design of its structures, or its location. As such, real estate markets consist of assets that are considered:

Correct Answer
verified

As of 2015, the single largest asset category in the net worth portfolios of households is:

Correct Answer
verified

Exam 1: The Nature of Real Estate and Real Estate Markets

Real estate consists of the physical structures and infrastructure that accompany the land. All of the following are examples of an improvement to the land EXCEPT:

Correct AnswerverifiedShow Answer

Considered a fundamental pricing metric in commercial real estate markets, the ratio of a property's annual net income to its market value is more commonly referred to as a(n) :

Correct AnswerverifiedShow Answer

Especially in terms of retail properties, which of the following attributes is considered the most likely to result in drastic value differences between otherwise similar properties?

Correct AnswerverifiedShow Answer

By the fourth quarter of 2015, U.S. households had accumulated $12.5 trillion in housing equity, which represents about 14 percent of their net worth. What proportion of U.S. households own their home?

Correct AnswerverifiedShow Answer

If a property's expected annual net income is $89,100 and its current market value is $1,060,000, the property's capitalization rate is:

Correct AnswerverifiedShow Answer

Capital markets can be divided into four main categories: private equity, public equity, private debt, and public debt. An example of a real estate asset that trades in the private equity market is:

Correct AnswerverifiedShow Answer

If we desire to classify land by its use, land that does not include any improvements to the land would be categorized as:

Correct AnswerverifiedShow Answer

All of the following are examples of an improvement on the land EXCEPT:

Correct AnswerverifiedShow Answer

Equity investors can choose to participate indirectly in real estate markets by purchasing shares in publicly traded real estate companies. In doing so, investors benefit from all of the following EXCEPT:

Correct AnswerverifiedShow Answer

Each property has unique features, whether it is its age, the building design of its structures, or its location. As such, real estate markets consist of assets that are considered:

Correct AnswerverifiedShow Answer

As of 2015, the single largest asset category in the net worth portfolios of households is:

Correct AnswerverifiedShow Answer

Correct Answer
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Correct Answer
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