Which of the Following Statements Regarding Real Estate Investments Is

question 11

Multiple Choice

Which of the following statements regarding real estate investments is true?

• A) Real estate investments move in tandem with stocks.
• B) Adding real estate to your stock portfolio increases investment diversification.
• C) Real estate is an asset with high liquidity.
• D) Real estate investments have less scope for financial leverage.
• E) Real estate investments cannot depreciate.

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Definitions:

Merchandiser

A business or person that purchases goods to sell them at retail or wholesale, making a profit through the markup on sold goods.

Cost of Goods Sold

Costs directly linked to the creation of products sold by a business.

Fraud

Deliberate deception to secure unfair or unlawful gain, or to deprive a victim of a legal right.

Employee Fraud

Dishonest activities conducted by employees to provide them with an advantage, financial or otherwise, at the expense of their employer.