The basic equation for real estate return on investment is the increase in value plus the net rental income, minus the interest expense, all of which is divided by which financial component?

beginning investment

capital appreciation

ending outlay

market price

Which statement is false regarding closed-end funds?

Closed-end funds always trade at their net asset value.

There are far fewer closed-end funds than there are open-end funds.

Closed-end funds have a fixed number of shares.

Closed-end funds may trade on organized exchanges or in the over-the-counter market.

Direct real estate investments lack _______because only a limited number of potential buyers exist and it can take months to find a buyer and close the deal.

tax benefits

high returns

liquidity

transaction costs