reae4321realestateinvestment.docVIP

REAE 4321: Real Estate Investment Exam II October 6, 1999 Name _________________________ Part I: Multiple Choice - Please select the best answers by carefully filling in the appropriate oval on you answer sheet. (55 questions, 1 point each) Which of the following is NOT an example of operating expenses? Property taxes Maintenance fees Income taxes All of the above are examples of operating expenses The need for real estate market research exists because: real estate markets are relatively efficient. all relevant information is quickly reflected in market prices. firms view their marginal revenue curves as horizontal. data for rational decision making are often not readily available. A property has a potential gross income of $1,500,000; operating expenses of $765,750; a vacancy allowance of $45,000; and other income of $9,000. What is its effective gross income? $1,455,000 $1,464,000 698,250 None of the above Longitudinal studies: involve one-time sampling from a population of research interest. Measure changes over time. Are the most frequent type of data-collection assignment. Provide a single snapshot of the variables under observation. To forecast future benefits from a proposed venture, which of the following should be considered? The property’s immediate post operating history. Anticipated changes in the social and political environment. The likely change in a property’s market value over the holding period. All of the above Operating management users research data for planning, problem solving, and control purposes. Which one of the following is most likely to be used for control purposes? Data on basic trends in the economic environment. Data on standard amenity packages including in competitive buildings. Data on typical tenant mix in competitive commercial rental projects. Tracking operating expense ratios for buildings in one’s portfolio. The amount of revenue a property would generate if fully occupied at market re