CFA Level I sample question

CFA Level I 4. Real Estate question

Alternative Investments / 4. Real Estate

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4. Real Estate sample question

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Alternative Investments

4. Real Estate

A property has potential gross rental income of USD1,200,000, expected vacancy and collection losses of 5% of potential gross income, and operating expenses of USD420,000. Using a capitalization rate of 6.5%, the indicated property value is closest to:

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