1 Marks: 4 Based on the Four Quadrant Portfolio model, a commingled real as offered by members of the National Council of Real

Estate ries (NCREIF) or the Institutional Property Databank (IPD) is t class designated as: Choose one answer. d. c. b. PrivateDebt Asset a. A Public EquityAsset Debt Asset EquityAsset Question 2 Marks: 4 Given a fixed and constant net operating income (NOI), if the drop over time, this movement indicates that: Choose one answer. V=NOI/cap period is reduced. d. Payback market values is declining c. Refinancing b. Overallrate potential areimproving a. Increasing expectations are pushing values up

estate fund (CREF) Investment Fiducia an example of asse

cap rate begins to

Question 3 Marks: 4 The rate measure or concept that considers income flows plus price changes over time, within a defined time period is called: Choose one answer. Question 4 d. yield c. present rate b. modifiedvalue of return a. A ratio rate Marks: 4 The time value of money is based on the concept of: Choose one answer. Lecture 1: This d. c. A bird money hand is on consumption income flows b. The isin the of presentfor two in the bushor Austrian School a. Timetrade-offis based worth periodic for investment wealth the Marginalist s of economics premise which focuses on the decision required in the trade-off of current and future consumption as the basis of investment. Question 5 Marks: 4 Because compound interest is the foundation of most if not all income models, th en significant consideration must be given to: Choose one answer. Question d. Future6value c. Reinvestment assumptions b. The internal rate of return a. Ratio analysis Marks: 4 As per your text and the notes, based on Fisher's Expectation Theory, the line o f causation of the money/capital markets and the interest rate mechanism is: Choose one answer. a. Money, economy, inflation, inflationary expectations, credit markets and inte b. Interest rest rates rates, credit markets, inflationary expectations, inflation, economy an Lecture d. Credit markets, Supply ? Economy ? Inflation ? c. Inflationary expectations, inflation, economy, interest rates d money 5-6-7 Money inflationary expectations, and interest rates and money Inflation Expectations ? Interest Rates. Question 7 Marks: 4 The callability opinion considered in the typical FRM is based on the ability of the borrower to: Choose one answer. L10d. Callability risk; reinvestment at c. Buy-down b. Prepay the mortgage a down market a. Assume the mortgage inrateup-market lower rates if an prepayment, L5-6-7 With Prepayment in increasing interest rate market (Callability) Question 8 Marks: 4 Intermediaries are: Choose one answer. a. Financial institutions that channel funds from the surplus income units to de

b. Financial institutions that channel funds from the deficit income units to su ficit income units. d. Institutions that c. Financial institutions consumers obtain government regulations rplus income units. help not controlled byfunds but not assume related risks Question 9 Marks: 4 An asset class is defined by: Choose one answer. b. a. The returnand source ofperformance of a specific stock or asset. magnitude an basis and overall returns and the risk levels, such as the d frequency of exposure associated with the return expectations based on asset a c. The focus on the concerns and expectations or benefits to specific individual ttributes Question 10 d. The fine-tuned specific of all return changes s, operating undersuccessionbudgetary constraints and individual tax positions. Marks: 4 The four moments of a normal parametric distribution are: Choose one answer. c. A statistic, parameter, frequency distributions of cumulative b. Reliability, amedian, the mode associations and parameter estimation a. The mean, thecentral tendency, and the coefficientand variation distribution Question 11 d. s Central tendency, dispersion, skewness and kurtosis. Marks: 4 The tradition measures of central tendency are: Choose one answer. c. A statistic, parameter, frequency distributions of cumulative b. Reliability, amedian, the mode associations and parameter estimation a. The mean, thecentral tendency, and the coefficientand variation distribution Question 12 d. s Central tendency, dispersion, skewness and kurtosis. Marks: 4 The coefficient of variation is: Choose one answer. b. a. The total spread in a sample set of observations to the mean or measure of c ratio of the standard deviation or dispersion c. The ratio of entral tendency the mean or measure of central tendency to the standard deviatio d. The spread between each observation and mean divided by the standard deviatio n or dispersion n Wiki: In probability theory and statistics, the coefficient of variation (CV) is a normalized measure of dispersion of a probability distribution. It is defined as the ratio of the standard deviation to the mean Question 13 Marks: 4 The Z-factor is: Choose one answer. a. The ratio of the mean or measure of central tendency to the standard deviatio b. The percentage n or dispersion under a normal distribution calculated as the spread between e d. c. observation and in a dividedset of standard deviation achThe total spread meandistributivetheobservations as the spread between each percentage under sample by curve calculated observation and mean divided by the standard deviation allowing for degrees of This is freedom the Z factor, where: (Xi - X) Z = -------------? So the normal distribution looks at an observation s relative distance from the ce nter (zero) and gives the probability of an value falling within this distance Question 14 Marks: 4 A measure of association and sensitivity of sample relations used to describe th e general population is called a: Choose one answer. d. Measure c. Parameter b. Variableof a. Statistic central tendency The Four Parameters describing this normal distribution are the measures of: Question 15 Marks: 4 Total risk measures ion capital markets can be separated into: Choose one answer. L3-4 In conjunction undiversifiable e. All of the above market risk d. Diversifiable c. Idiosyncratic unsystematic b. Systematic andandwith risk risk is the a. Market and fundamentalthis notion risk assumption that fundamental, unsyste

matic, idiosyncratic or non-market risk can be diversified away Question 16 Marks: 4 Indices for specific assets can be used as a proxy for each asset class Choose one answer. Portfolio of d. Estimate endowment c. Market Models 2: b. Capitalperformance a. ResourceflowpricePricing links Portfolio to Index; An index as market proxy (specifically the CML) Question 17 Marks: 4 The alpha in an asset s characteristic line is a measure of: Choose one answer. d. c. b. a. The systematic/market riskrisk unexpected unsystematic expected unsystematic risk total unsystematic/fundamental risk ?iI reflects an expected return component not associated with the market and ?I which reflects unexpected components of risk not associated with the market Question 18 Marks: 4 The prices of capital assets in the market in theory are predominantly a functio n of: Choose one answer. Question 19 freesrate exposure asset d. c. b. The diversifiable risk ofobjectivesor portfolio a. risk systematic goals and an investor risk Marks: 4 The CAPM (capital Asset Pricing Model) is similar to the calculation of the weig hted cost of capital model in that it bases the expected return on: Choose one answer. b. The combination of debt, the efficient portfolio a. Solely the performance ofvia the risk free rate and equity using the expected c. A separationefficient portfolio.classes across the total extent of risk-retur return of the of different asset Question d. The 20 n spacemaximum loan available Marks: 4 Klemensky and Martin s research suggest that portfolios or asset classes with high sensitivity to market tend to have: Choose one answer. c. More unsystematic risk measures b. Lowerstable return performance a. Higherunsystematic risk levels Article: This apparent association c. Lower risk exposure in general between A3j and Var(Ej) for individual stocks suggests that a similar relationship exists between portfolio beta and portfoli o residual variance. Question 21 Marks: 4 A leptokurtic distribution is typically characterized by: Choose one answer. L3-4 d. If kurtosis exceeds 3, the symmetrical c. uniformconcentrated peakedwith fat tailsis peaked b. Inconsistent central tendencydistribution distributive spread a. A highly peakeddistribution acenter with fat tails with thick tails relative flat center with to the normal distribution leptokurtic Question 22 Marks: 4 A platykurtic distribution is typically characterized by: Choose one answer. L3-4 If the flat distribution d. uniformkurtosis is peakedwith it tails c. Inconsistent center less than 3 fatis flat distribution b. A highly concentratedtendencycenter with fat tails a. Highly peakedcentral with a symmetricaladistributive spreadwith thick tails r elative to the normal distribution - platykurtic. Question 23 Marks: 4 The key primary characteristics that contribute to initiate the use and concept of securitization are: Choose one answer. a. The potential capacity to generate a cash flow and the need to overcome an as

setAsstrongof liquidity market and the absence of any potential benefits from b. lack active resale Question 24 d. c. The easy access to debt financing and the low risk ownership operational flows create joint tenancy and fractional free rate interests ability to Marks: 4 Analysis and understanding of indices and long-term data series development assi st in: Choose one answer. Question d. All of c. Set up25up abovespecifying analysis relative to performance measures b. Settingthe measures of riskmarket and the a. Identifyingperformance forecastingproxies pricing of derivatives and Marks: 4 According to Diermier, Ibbotson and Speigel, a proxy for the real rate of intere st is: Choose one answer. d. c. b. All change above gross national product (GNP) a. The growth in the rate of inflation rate and a longer term rate of the spread short term interest