solution to these multiple questions? 1. Recommendations to investment committee

ID: 2761531 • Letter: S

Question

solution to these multiple questions?

1. Recommendations to investment committees are improved by

(select all that apply):

A. Dividing work within a deal team to maximize efficiency

B. Including all available reports from reputable market sources

C. Presenting coherent logic between the market trends analysis, the financial projections assumptions and the investment recommendations

D. Presenting value recommendations based on the average price of recent comparable sales

E. Forecasting cash flows based on the lower of market or contract rents under existing leases

2. The best rental comps are generally:

A. From the same submarket, regardless of their date

B. From the same comp set, regardless of their date

C. From the past 6 months, even if from a different submarket

D. From the past 6 months, within the comp set

E. None of the above

3. Over a boom and bust in oil prices in North Dakota, which of the following would be true:

A. Multifamily properties will experience cap rate compression and then decompression

B. Construction firms will correctly anticipate the bust in oil prices and not build new structures

C. The rise in house prices will be sustained for a much longer period of time than the decline in house prices

D. Existing owners of property will encourage new construction to happen by lowering regulatory barriers

1) B. Including all available reports from reputable market sources

C. Presenting coherent logic between the market trends analysis, the financial projections assumptions and the investment recommendations.

2) D. From the past 6 months, within the comp set

3) D. Existing owners of property will encourage new construction to happen by lowering regulatory barriers.

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