Commercial real estate prices rise only when rental rates rise.
a. True
b. False
2. Which is NOT a major determinant of CAP Rates?
a. Risk
b. Replacement Cost Level of Rent
c. Opportunity Cost of Capital
d. Growth Expectations
3. Which is NOT a reason investors typically buy real estate assets as an investment?
a. To earn income via rents & NOI
b. Beating Equity Indices such as the S&P
c. To diversify assets from stocks and bonds
d. To earn growth via appreciation