Alternative Investments MCQ - Alternative Investments Section 2
42
To get the equity exposure in the public market, a real estate investor will
most likely invest in:
A real estate investor will invest in shares of real estate investment trusts
as they are traded on exchanges and represent an equity investment in
real estate.
Both A and B are risks that could affect the value of existing properties as
well as the property in development. But difficulty in obtaining long term
financing is a risk that is only associated with the property development.
The income approach uses a discounted cash flow model to value real
estate.
Repeat sales index suffers from sample selection bias because it is highly
unlikely that the same properties come up for repeat sales every year.
