Which of the Following Is Not a True Statement

question 90

Multiple Choice

Which of the following is not a true statement?

• A)Real estate ownership represents one of the best hedges against inflation.
• B)Poor location can cause a piece of real estate property to go down in value.
• C)There are many factors to consider before investing in real estate.
• D)There is no reason to evaluate a real estate investment because real estate always increases in value sooner or later.
• E)Finding a buyer for a piece of real estate can be difficult if loan money is scarce.

---

Definitions:

Growth Rate

The percentage increase in a company's revenue or profit over a specific period.

Cost of Equity Capital

The return a company requires to decide if an investment meets capital return requirements and is typically used in the capital asset pricing model.

Price/Earnings Ratio

A valuation metric for a company that measures its current share price relative to its per-share earnings.

Growth Opportunities

Potential scenarios or plans that a company can undertake to increase its market share, revenues, or profitability.