Unlike many publicly traded stock and bond investments, commercial real estate investments:
A) can be bought and sold in highly liquid markets.
B) yield maximized returns when assets are held for short periods of time.
C) yield returns generated mostly from the asset's net operating income, rather than price appreciation.
D) have going-in and going-out transaction costs that are low (as a proportion of asset value).

Question

Quizplus · Accepted Answer

Commercial real estate investments are known to yield returns mainly from the income generated by the asset as opposed to price appreciation. This income is called net operating income (NOI). Unlike stocks and bonds, they are not as volatile and have a slower rate of appreciation.

Unlike Many Publicly Traded Stock and Bond Investments, Commercial Real