Choose the One Most Appropriate Answer for Each

question 60

Multiple Choice

Choose the one most appropriate answer for each.
-land value plus construction costs less depreciation

• A)adjustments
• B)appraisal
• C)buyer's market
• D)capitalize
• E)comparables
• F)cost approach
• G)curable depreciation
• H)depreciation
• I)functional obsolescence
• J)gross rent multiplier (GRM)
• K)highest and best use
• L)income approach
• M)incurable depreciation
• N)market approach
• O)net operating income (NOI)
• P)operating expenses
• Q)physical deterioration
• R)reproduction cost
• S)scheduled gross income
• T)subject property

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Definitions:

Risk-Free Rate

The expected yield from an investment that carries no risk, commonly exemplified by state bonds.

Dividend

A portion of a company's earnings distributed to its shareholders, typically in the form of cash or additional shares.

Cash Settlement

The provision of some futures contracts that requires not delivery of the underlying assets but settlement according to the cash value of the asset.

Stock Index Futures

Financial contracts that obligate the buyer to purchase or the seller to sell a stock index at a predetermined price on a specified future date.