What is the definition of rate of return? - ANSWERS-The percentage
returned on each dollar investment for each period it is invested
What are the Three major asset classes - ANSWERS-Stock market,
Real estate, and Bond Market
Explain the bond market concept - ANSWERS-Bonds are a financing
mechanism typically utilize by the large corporation to generate large
sums of money quickly. The investors are the lender and the
corporation serve as the borrower.
Bonds are also known as - ANSWERS-Fixed income securities
because and investor knows how much they will get and when the
bond will mature or be repaid
What are T bonds - ANSWERS-Government issued bonds are known
as Treasury bond, the structure and pricing are identical to that of
corporate bonds: however, government bonds typically are referred to
as risk free bonds, as they are backed by the full faith and credit of the
U.S. government other types of risk (interest rate)
Explain Stock market - ANSWERS-The stock market also serves as a
financing mechanism for corporation, no set interest rate or
repayment plan. each share of stock represent a stake or ownership
interest in a company
, REIT - ANSWERS-Real estate investment trust are companies that
have a special tax status and can be listed on a public stock exchange.
NCREIF - ANSWERS-National Council of Real Estate Investment
Fiduciaries- measure the performance of real estate held by
institutional investors. The index has over 6,000 properties consisting
office, retail, industrial and multi- family
What is the Capital Market - ANSWERS-The supply and demand for
resources to invest in real esate and other investments
How do you determine Cap Rate - ANSWERS-NOI net operating
income divided by purchase price = cap rate
Higher Cap Rate are attractive to - ANSWERS-Buyer like higher cap
rates lower purchase price
Lower Cap Rate are idea for the - ANSWERS-Seller lower cap rate
great value sale or financing
Space market - ANSWERS-Demand for space is referred to as space
market. the demand for space is impacted by the growth of the
economy, demand for products and services from business and
employment growth etc