1. Commercial real estate prices rise only when rental rates rise.

a. True

b. False

2. Which is NOT a major determinant of CAP Rates?

a. Risk

b. Replacement Cost Level of Rent

c. Opportunity Cost of Capital

d. Growth Expectations

3. Which is NOT a reason investors typically buy real estate assets as an investment?

a. To earn income via rents & NOI

b. Beating Equity Indices such as the S&P

c. To diversify assets from stocks and bonds

d. To earn growth via appreciation