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:

Durability

The ability of a product or material to withstand wear, pressure, or damage, indicating its quality and longevity.

Equity

The principle of fairness or justice in the way people are treated within social, economic, and legal contexts.

Informal Rewards

Non-monetary or unofficial incentives given to employees, such as praise, recognition, or additional responsibilities, to motivate and encourage positive behaviour.

Desired Behavior

The specific actions or reactions that are sought after in a particular context, often the target of encouragement or training.