Please answer whatever you know!

Q1.What below best describes real estate segmentation?

1. Breaking the space market up by price and quality categories (such as property classes)
2. Breaking the space market up into geographic and property type sub-categories
3. Allocating total return between income return and appreciation
4. Some investors choose to focus on specific property types to deploy capital (i.e. office)

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Q2. All of the following are true about long run equilibrium except which one?

1. It is the replacement cost rent
2. It is less than the effective rent
3. It is the rent just sufficient to make new development profitable
4. It is the rent the market tends to return to

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Q3. It is most proper to use multi period return measures like IRR when...

1. You are analyzing an existing investment fund and want to asses historical performance 2. You are buying a property you expect to hold for 5 years 3. You are extremely risk sensitive 4. Your cost of capital is constant ---------------

Q4. What is true when you choose not to sell an asset?

1. You are willing to buy it at todays market price

2. NPV > 0 where, NPV=P-V

3. All are true

4. You believe its value is greater than todays market price

--------- Q5. Which is not a common mistake in real estate DCF practices?

1. Utilizing a going in cap rate that is too high

2.making rent and income growth assumptions that are too high

3.using a discount rate thats too high

4. projecting capital improvement expense too low

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Q6. What is not an example of a capital expenditure?

1. Tenant improvements

2. Repairing a leaky toilet

3. Leasing expenditures

4. Total roof replacement

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Q7. What below isnt true about amortization of a level mortgage payment?

1. The contract interest will not change regardless of market interest rates over time

2.the monthly PMT will remain the same for each period

3. The amt of interest paid each period will remain the same for the entire loan

4. Escrow tax and insurance payments could go up or down depending on actual cost