1. True or False: Assuming a typical Private Equity Fund structure with a 10Y life, the first 3Y to 5Y are referred to as the Harvest Period and the last 5Y to 10Y are referred to as the Investment Period.

2. Using the Income Approach, an analyst wants to calculate the value of a commercial real estate property. The NOI is estimated to be $65,000 and the market capitalization rate is 8%.

a. 70,200

b. 520,000

c. 812,500

d. none of the above

3. True or False: The General Partner of a typical Private Equity Fund is responsible for raising the Private Equity funds (equity) capital in addition to searching for, evaluating, making and managing investments.

4. An investor is considering the purchase of a small office building. The Gross Potential Rental Income is $250,000. Estimated Vacancy is 5%. Insurance Costs are $10,000. Real Estate Taxes are $8,000. Federal Tax Depreciation is $10,000. Compute NOI.

a. 207,500

b. 197,500

c. 187,500

d. none of the above

4. True or False: Futures are customizable contracts while Forwards are not.