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:

Unreasonably Dangerous

A term used to describe products or activities that pose a risk of harm beyond what would be contemplated by an ordinary person under normal usage.

Defective Product

A product that is not safe for its intended use due to a design, manufacturing, or marketing defect, potentially leading to legal liability for the manufacturer.

Section 402A

A specific provision of the Restatement (Second) of Torts, establishing the manufacturer's liability for harm caused by defective products.

Implied Warranty of Merchantability

An assurance that a product will meet a reasonable level of quality and reliability for the purpose it was sold for.