CHAPTER 36 TO 40
36. Real assets often increase in value when
A. Higher levels of inflation are anticipated
B. The stock market is advancing
C. The public is confident about world events
D. Bond prices are advancing
37. Real assets may be effective for portfolio diversification because
A. They provide an effective hedge against deflation
B. They are perceived as a safe haven for investments
C. Real and financial assets are less positively correlated than financial assets alone
D. None of the above
38. Compared to other investments, which of the following is not a disadvantage of investing in real assets?
A. The initial amount of money is usually large
B. The absence of a relatively efficient, liquid market
C. High transaction and incidental costs
D. All of the above are disadvantages
39. Real estate is a particularly good investment among real assets because of
A. Depreciation write-offs
B. Appreciation in value due to price appreciation
C. Long-term financing
D. All of the above
40. Depreciation
A. On residential real estate property can be written off over 31 1/2 years
B. On commercial real estate can be written off over 31 1/2 years
C. Can be accelerated for commercial real estate
D. None of the above
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India