Question 1

A disadvantage of real estate investment is

Accepted Answer

A) financial risk. 
B) large initial investment. 
C) illiquidity. 
D) All of these. 
A) financial risk. 
B) large initial investment. 
C) illiquidity. 
D) All of these.

Question 2

Planting trees and shrubs on your rental property is an example of a capital improvement.

Accepted Answer

A) True 
 B)False

Question 3

Patrick invested $55,000 and borrowed $105,000 for an investment worth $160,000.What was the loan-to-value ratio?

Accepted Answer

A) 48 percent 
B) 66 percent 
C) 34 percent 
D) 52 percent 
A) 48 percent 
B) 66 percent 
C) 34 percent 
D) 52 percent

Question 4

____ is a repair expense for rental property rather than a capital improvement.

Accepted Answer

A) Painting the kitchen 
B) Remodeling the garage into a game roomc 
C) Adding a new patio 
D) Building a sidewalk 
A) Painting the kitchen 
B) Remodeling the garage into a game roomc 
C) Adding a new patio 
D) Building a sidewalk

Question 5

One advantage of an investment in real estate is that leverage can increase an investor's return.

Accepted Answer

A) True 
 B)False

Question 6

If you put money into collectibles,limit your investment to no more than 20 percent of your portfolio.

Accepted Answer

A) True 
 B)False

Question 7

When an option writer does not own the asset,it is called a

Accepted Answer

A) straddle. 
B) naked option. 
C) covered option. 
D) warrant. 
A) straddle. 
B) naked option. 
C) covered option. 
D) warrant.

Question 8

The prudent investor limits high-risk investments to less than ____ percent of his or her overall investment mix.

Accepted Answer

A) 10 
B) 15 
C) 20 
D) 25 
A) 10 
B) 15 
C) 20 
D) 25

Question 9

Transfer costs are generally 6 to 7 percent of the property's sale price.

Accepted Answer

A) True 
 B)False

Question 10

Successful investors in speculative investments must always be alert to market developments regarding their investments.

Accepted Answer

A) True 
 B)False

Question 11

The best-quality precious gems and metals are sold by

Accepted Answer

A) wholesale firms. 
B) jewelers. 
C) miners. 
D) wholesale firms and jewelers. 
A) wholesale firms. 
B) jewelers. 
C) miners. 
D) wholesale firms and jewelers.

Question 12

Buying ____ is a way to immunize a conservative investor's portfolio against severe price declines because safeguard profits.

Accepted Answer

A) calls 
B) puts 
C) futures 
D) commodities 
A) calls 
B) puts 
C) futures 
D) commodities

A disadvantage of real estate investment is

Planting trees and shrubs on your rental property is an example of a capital improvement.

Patrick invested $55,000 and borrowed $105,000 for an investment worth $160,000.What was the loan-to-value ratio?

____ is a repair expense for rental property rather than a capital improvement.

One advantage of an investment in real estate is that leverage can increase an investor's return.

If you put money into collectibles,limit your investment to no more than 20 percent of your portfolio.

When an option writer does not own the asset,it is called a

The prudent investor limits high-risk investments to less than ____ percent of his or her overall investment mix.

Transfer costs are generally 6 to 7 percent of the property's sale price.

Successful investors in speculative investments must always be alert to market developments regarding their investments.

The best-quality precious gems and metals are sold by

Buying ____ is a way to immunize a conservative investor's portfolio against severe price declines because safeguard profits.

Understanding Personal Finance

Career Planning

Financial Statements,tools,and Budgets

Managing Income Taxes

Managing Checking and Savings Accounts

Building and Maintaining Good Credit

Credit Cards and Consumer Loans

Vehicles and Other Major Purchases

Obtaining Affordable Housing

Managing Property and Liability Risk

Managing Health Expenses

Life Insurance Planning

Investment Fundamentals

Investing in Stocks and Bonds

Mutual Funds and Exchange Traded Funds

Retirement and Estate Planning

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Exam 16: Real Estate and High-Risk Investments

A disadvantage of real estate investment is

Planting trees and shrubs on your rental property is an example of a capital improvement.

Patrick invested $55,000 and borrowed $105,000 for an investment worth $160,000.What was the loan-to-value ratio?

____ is a repair expense for rental property rather than a capital improvement.

One advantage of an investment in real estate is that leverage can increase an investor's return.

If you put money into collectibles,limit your investment to no more than 20 percent of your portfolio.

When an option writer does not own the asset,it is called a

The prudent investor limits high-risk investments to less than ____ percent of his or her overall investment mix.

Transfer costs are generally 6 to 7 percent of the property's sale price.

Successful investors in speculative investments must always be alert to market developments regarding their investments.

The best-quality precious gems and metals are sold by

Buying ____ is a way to immunize a conservative investor's portfolio against severe price declines because safeguard profits.

Understanding Personal Finance

Career Planning

Financial Statements,tools,and Budgets

Managing Income Taxes

Managing Checking and Savings Accounts

Building and Maintaining Good Credit

Credit Cards and Consumer Loans

Vehicles and Other Major Purchases

Obtaining Affordable Housing

Managing Property and Liability Risk

Managing Health Expenses

Life Insurance Planning

Investment Fundamentals

Investing in Stocks and Bonds

Mutual Funds and Exchange Traded Funds

Retirement and Estate Planning

Filters