Question #4
Reading: Reading 33 Real Estate Investments
PDF File: Reading 33 Real Estate Investments.pdf
Page: 2
Status: Correct
Correct Answer: B
Question
Which of the following is least likely a difference between real estate investments and traditional asset classes like stocks and bonds?
Answer Choices:
A. Real estate tends to be indivisible
B. Real estate tends to be difficult to value
C. Real estate tends to be homogenous
Explanation
Investment in real estate is complicated by difficulty in valuing real estate, indivisibility of
real estate investment (high unit value) and heterogeneity of different real estate
properties even within the same class/geographical location.