In Evaluating a House That Has an Actual Age of 15

question 30

Multiple Choice

In evaluating a house that has an actual age of 15 years, the appraiser assigned it an age of only 10 years because of the home's excellent condition. This is an example of:

• A) effective age
• B) chronological age
• C) economic age
• D) physical age

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Definitions:

Semi-Strong Efficiency

A form of market efficiency that asserts all public information is already reflected in stock prices, making it impossible to achieve consistently higher returns.

Historical Information

Past data or records that provide context or insight into an event, individual, or institution's background.

Market Prices

The current price at which an asset or service can be bought or sold in a market, determined by the supply and demand forces.

Percentage Return

The return on an investment expressed as a percentage of the original investment amount.