Question: Please I need help fast! Will upvote! Thank you in advance! 1- If you were buying a large apartment (multi-family) complex, which of the following

Please I need help fast! Will upvote! Thank you in advance!

1- If you were buying a large apartment (multi-family) complex, which of the following risks would you be least concerned about? Ch13

Regulatory (legislative) risk

Inflation risk

Business and general economic risk

Management risk

2-

Standard deviation is a tool that can be used in conjunction with a real estate proforma analysis. The results provide information on: Ch13

How much your specific investment varies from a "standard" real estate investment

Where you might be in the standard business cycle for this sector of real estate

The variability of expected returns under a probability-weighted sensitivity or scenario analysis

The standard amount your returns would be impacted by any given variable change

3-

The purpose of "partitioning the IRR" is best described as: Ch13

Determining how dependent your analysis model is on your "going-out" assumptions versus your operating assumptions

To determine the parts that make up your required return including the risk free portion, and premiums for inflation, leverage, and other real estate related risks.

Acknowledging the difference between Internal Rate of Return and Required Rate of Return

To split out the risk of a project by variables used in a model through the application of a sensitivity analysis.

4-

You are considering buying one of two reasonably leveraged real estate investments. Investment A shows a 10% IRR. Investment B, with slightly higher leverage, shows a 13% IRR. Which do you buy? Ch 13

Buy investment B since it has higher returns

Buy investment A since it has lower risk

Buy investment B as it has substantially higher returns with only slightly higher leverage

There is not enough information in the question to make an informed decision

5-

  1. Which of the following risks is likely to be the most significant when considering an existing commercial income property: Ch13

    Lease rollover risk

    Inflation risk

    Interest rate risk

    Management risk

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