Question 4 / 31:  Which of the following is true about typical real estate investment (unlevered, at the direct property level) and inflation risk?
A  Real estate investment appreciation returns do not generally keep pace with inflation in the
long run, but real estate investment provides a hedge against inflation risk in that unexpected
changes in inflation tend to be positively correlated with changes in property value in the
short to medium term.
B  Real estate investment appreciation returns generally at least equal the inflation rate in
the long run, but real estate does not provide a good hedge against inflation risk in that
unexpected changes in inflation do not tend to be positively correlated with changes in property
value in the short to medium term.
C  Real estate investment appreciation returns generally at least equal the inflation rate in
the long run, and real estate investment provides a hedge against inflation risk in that unexpected
changes in inflation tend to be positively correlated with changes in property value in the
short to medium term.
D  Real estate investment appreciation returns do not generally keep pace with inflation in the
long run, and real estate does not provide a good hedge against inflation risk in that unexpected
changes in inflation do not tend to be positively correlated with changes in property value
in the short to medium term.
Sorry No Instant Evalutaion available for this question
<< First < Previous Next > Last >>
Exam Home Page
https://www.jobilize.com/real-estate-finance-2003-exam-by-prof-tod-mcgrath-mit

Real Estate Finance & Investment Midterm Exam 2003

Author:

Access: Public Peer Review

Attribution:  Geltner, David, and Tod McGrath. 11.431J Real Estate Finance and Investment, Fall 2006. (MIT OpenCourseWare: Massachusetts Institute of Technology), http://ocw.mit.edu/courses/urban-studies-and-planning/11-431j-real-estate-finance-and-investment-fall-2006 (Accessed 1 May, 2014). License: Creative Commons BY-NC-SA
Ask
Dionne Mahaffey
Start Quiz
Copy and paste the following HTML code into your website or blog.
<iframe src="https://www.jobilize.com/embed/real-estate-finance-2003-exam-by-prof-tod-mcgrath-mit" width="600" height="600" frameborder="0" marginwidth="0" marginheight="0" scrolling="yes" style="border:1px solid #CCC; border-width:1px 1px 0; margin-bottom:5px" allowfullscreen webkitallowfullscreen mozallowfullscreen> </iframe>