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2014CFA3级-每日一练-R13-20140313
John Smith owns 3 apartment buildings. He employees himself as the business manager and pays himself a market wage for this function. Being recently divorced, this job has brought stability to his life. Financially he does not need the manager salary but emotionally he needs the job. Considering the behavioral finance issues Smith would be least receptive to a:
A) hedge of the buildings value.
B) monetization of the buildings.
C) sale of the buildings.
solution:C
Sale would be of least interest as it is the most likely to require giving up the properties and the resulting management job which provide a psychological benefit to Smith. |
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