QUESTION 20 A major trigger to the 2007-2008 financial crisis was interest rates increasing on the adjustable rate mortgages previously given to borrowers True O False QUESTION 17 4p While it is often sufficient to rely on informal methods of estimating the market value of real estate assets the complexity and large dollar value of many real estate decisions dictate that formal estimates based on methodical collection and analysis of relevant market data should be utilized. The unbiased written estimate of the market value of a property is commonly referred to as an O arm's length transaction O appraisal O property adjustment O reconciliation QUESTION 18 2 poin A low cap rate indicates a poor investment O True False QUESTION 15 The starting point in calculating net operating income is the total anual income the property would produce assuming 100 percent occupancy and no collection losses. This is commonly referred to as: effective Gross income potential Gross income O operating expenses O capital expenditures QUESTION 16 4 This lease type indudes all operating expenses within the lease payments Gross Lease O NNN (Triple Net) Lease O Sub-lease Fixed lease QUESTION 1 Fundamental to the 2007-2008 financial crisis, mortgages were bundled into this financing derivative, ultimately passing the default risk to the next investor. Collateralized Debt Obligation Mortgage stack Annuity Mortgage pile QUESTION 2 of the three investment valuation methodologies we have discussed in class none factor in the future sale price. True False