What Changes Have Increased the Risk Associated with the Santa

question 50

Multiple Choice

What changes have increased the risk associated with the Santa Ana winds in southern California?

• A) Climate change has increased the local rainfall, leading to mudslides.
• B) There hasn't been an increased risk - people have started building outside of fire zones now.
• C) Commonly used landscape trees are more flammable than naturally occurring vegetation.
• D) Very little flammable material exists anymore in the landscape, so houses burn more easily.

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Definitions:

Real Estate Brokerage

A service involved in arranging the buying, selling or renting out of properties, utilizing agents or brokers to facilitate transactions between buyers and sellers.

Mortgages

Loans specifically used for purchasing real estate, where the property itself serves as collateral to secure the loan.

Liabilities and Net Worth

The total of all debts and obligations owed by an entity minus its total assets, portraying the entity's financial health and capital.

Efficient Market Hypothesis

The theory that all available information is already reflected in asset prices, thereby making it impossible to consistently achieve higher returns.