CFA-Level-I Exam Question 506
Price takers face:
CFA-Level-I Exam Question 507
Sampling error, which can be attributed to the fact that only a sample of values is observed, is
CFA-Level-I Exam Question 508
An investor is considering a 20-unit apartment building that is 10 years old and in excellent condition.
The potential rent for the building is $625 per month per unit and is expected to increase 3% per year.
Total vacancy and bad debt losses are projected at $6,000 per year, with 2% growth per year. Annual operating expenses include $30,000 for maintenance, $8,000 for property taxes, and $2,500 for property insurance. All operating expenses are expected to increase 2% annually. The property is depreciated using the straight-line method over 27.5 years, with an original depreciable basis of $650,000 (land valued at $50,000). The investor is in the 28% marginal income tax bracket, faces a 20% capital gains tax rate, and desires a minimum after-tax rate of return of 15%.
The net operating income for year 2 is closest to:
The potential rent for the building is $625 per month per unit and is expected to increase 3% per year.
Total vacancy and bad debt losses are projected at $6,000 per year, with 2% growth per year. Annual operating expenses include $30,000 for maintenance, $8,000 for property taxes, and $2,500 for property insurance. All operating expenses are expected to increase 2% annually. The property is depreciated using the straight-line method over 27.5 years, with an original depreciable basis of $650,000 (land valued at $50,000). The investor is in the 28% marginal income tax bracket, faces a 20% capital gains tax rate, and desires a minimum after-tax rate of return of 15%.
The net operating income for year 2 is closest to:
CFA-Level-I Exam Question 509
When the Federal Reserve lowers the federal funds rate, the quantity of money ____ and the supply of loanable funds ____.
CFA-Level-I Exam Question 510
For a two-stock portfolio, what would be the preferred correlation coefficient between the two stocks?