标题: Reading 34: Alternative Investm....olio Management－LOS g [打印本页]
作者: tycoon 时间: 2008-9-16 12:02 标题: [2008] Session 11－Reading 34: Alternative Investm....olio Management－LOS g
CFA Institute Area 8-11, 13: Asset Valuation
Session 11: Alternative Investments for Portfolio Management
Reading 34: Alternative Investments Portfolio Management
LOS g: Evaluate the advantages and disadvantages of direct equity investments in real estate.
作者: tycoon 时间: 2008-9-16 12:03
Direct equity real estate investing has all of the following advantages over indirect real estate investing EXCEPT:
| A) | tax deductible expenses. |
|
| B) | the ability to use more leverage. |
|
| C) | the ability to manage geographic diversification. |
|
D) | lower information costs. |
|
Answer and Explanation
Direct equity real estate investing has the following advantages: many expenses are tax deductible, the ability to use more leverage than other investments, having more control, and the ability to diversify geographically. Higher information costs are a disadvantage to direct real estate investing.
作者: tycoon 时间: 2008-9-16 12:03
Direct equity real estate investing has the following disadvantages over indirect real estate investing EXCEPT:
A) | less control over the investments performance. |
|
|
|
|
Answer and Explanation
Direct equity real estate investing has the following disadvantages: lack of divisibility means a single investment may be a large part of the investors portfolio. There are high information cost, high commissions, high operating and maintenance costs, and hands-on management requirements. There are special geographical risks like neighborhood deterioration and the political risk of changing tax codes.
作者: tycoon 时间: 2008-9-16 12:04
Compared to stocks, direct equity investments in real estate have had:
| A) | higher volatility of returns. |
|
B) | lower volatility of returns. |
|
| C) | about the same volatility of returns. |
|
| D) | much higher average returns. |
|
Answer and Explanation
Lower volatility is the correct answer. The average return has actually been lower than those of stocks over the long-term.
| 欢迎光临 CFA论坛 (http://forum.theanalystspace.com/) |
Powered by Discuz! 7.2 |