The Cost of Obtaining All of the Information Sufficient to Make

question 15

Multiple Choice

The cost of obtaining all of the information sufficient to make an informed and rational investment in real estate is termed:

• A) marketability risk
• B) residual risk
• C) formation risk
• D) liquidity risk

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Definitions:

Regression Coefficient

A value that represents the amount by which a dependent variable changes when a related independent variable changes by one unit.

Regression

A statistical method used to determine the relationship between a dependent variable and one or more independent variables.

Variance

Average squared deviation from the mean.

Degrees Freedom

Degrees of freedom refer to the number of independent values or quantities which can be assigned to a statistical distribution or to the number of variables minus the number of constraints in a system.