The Use of Financial Leverage When Investing in Real Estate

question 32

Multiple Choice

The use of financial leverage when investing in real estate is a double-edged sword. While increased leverage may allow the investor to "purchase" higher expected returns, the "price" of doing so is an increase in which of the following risks?

• A) Liquidity risk
• B) Default risk
• C) Interest rate risk
• D) Pipeline risk

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Definitions:

Media

Various means of communication and expression, including text, audio, video, and multimedia content.

Age

A measure of time that an entity or person has been alive or in existence, usually expressed in years.

Stream

A continuous flow of data or media that can be processed or played as it is received, often used in the context of video or audio content delivery over the internet.

Daily Time Limits

Restrictions set on devices or software to limit the amount of time spent using them each day.