BUSI 422 Read & Interact Brueggeman & Fisher Chapter 23 solutions complete answers

BUSI 422 Read & Interact Brueggeman & Fisher Chapter 23 solutions complete answers

 

A core fund purchased an older B quality property in an A quality location. The property could become a core property with high occupancy with some minor improvement and modernization. This type of property is referred to as a:

 

A(n)   -end fund seeks to raise a specific amount of capital over a specific period of time, after which the fund is closed to new investors.

 

Investors make capital   to a fund before the fund has commenced actual property acquisitions. As the fund begins to acquire properties it will make a "capital call" to investors who then make capital  .

 

Real estate investment funds are categorized by _____.

 

In a(n)   - end fund new investors may be admitted after the initial offering and after the fund commences operation.

 

A _____ is a period of time during which investors' exit from the fund is not permitted.

 

Private real estate investment funds typically use a ________ partnership structure.

 

A low tracking error suggests that:

 

Suppose a particular fund's beta is 0.75. The fund's benchmark decreased by 100 basis points. This means that the return would:

 

The _____ method is an alternative way of doing the sector allocation component of attribution analysis.

 

Superior   is value added by a transactions team, superior asset/property management practices and executing an effective disposition policy. Superior   is value added from buying and selling in the right market locations.

 

If the beta for a fund is ________ the beta for the benchmark, then as the benchmark return increases, the fund return should increase even more to a greater extent.

 

Suppose you have invested $100,000 in a fund. The equity multiple is 1.5. How much will your investment be worth (including what you received relative to what you invested)?

 

The _____ the tracking error, the _____ the information ratio.

 

analysis involves the decomposition of the total investment performance into additive components.

 

The TWR is the _________.

 

The   mean is considered the most relevant for performance measurement by most industry professionals.

 

_____ add(s) objectivity when determining property values and tend to reduce possible conflicts faced by fund management when reporting property values to investors in the fund.

 

Fund flows that occur within a quarterly reporting period are often referred to as _______ cash flows.

 

The before fee return is the   of fee return and the after fee return is the   return

 

When examining investment performance at the property level we do not want to consider the effects of any of the following: _________

 

Real estate investment funds are categorized into which of the following categories? Select all that apply.

 

The ______ weights each net cash inflow by the remaining number of days in the reporting period that cash flows are held in the investment fund.

 

Open-end funds typically follow a   strategy.

 

When considering performance at the fund level, some of the activities that must be performed continuously by the manager are:

 

Most investors do not have sufficient capital or expertise to construct a well diversified portfolio of real estate. _____ are created by investment management firms to meet the needs of different investors.

 

Many institutional investors __________.

 

The official start of the term of a fund occurs during the:

 

Identify which measure of performance is appropriate for the following situations.

 

       analysis refers to explaining why the performance of a fund may be higher or lower than the benchmark return.

 

The difference in the allocation of a fund versus the benchmark resulted in the fund having a return of 2.5%. Which of the following are possible explanations for this? Select all that apply.

 

Match the measurement to its definition

 

Answer using the appropriate acronyms. The        treats each period equally in its impact on the geometric mean, whereas the         reflects the exact timing of each cash flow and gives more weight to cash flows received in early periods.

 

Which of the following methods can be used when calculating returns that include intra-period cash flows? Select all that apply.

 

The difference between fund level returns and property level returns is referred to as:

 

Match the transaction/information to the appropriate flow of funds category.

 

Investment managers and pension plan sponsors are accountable to, and regulated by, the:

 

In many cases, a target return may change with economic conditions. In these cases expected return is tied to a       .

 

The investment multiple is sometimes referred to as       .

 

Select all that apply. Which of the following methods is acceptable for calculating historical returns?

 

The        is the rate that makes the present value of the cash flows, including the resale price, equal to the initial purchase price. Answer using the appropriate acronym.

 

To maximize         benefits, a sufficient of properties must be in a portfolio.

 

True or false: Returns from cash flows during the first period a property is owned has the same impact on the TWR calculation as cash flows received in the last period.

 

The excess return represents what the manager should be compensated for and is referred to as       .

 

Investment managers add value in which of the following ways? Select all that apply.

 

Fee loss refers to:

 

Select all that apply. Cash drag occurs because:

 

True or false: When analyzing the performance of an investment at the property level, it is important to consider the effects of leverage, cash retention and short-term investments and liabilities.

 

Investors in private real estate investment funds make decisions based on their investment objectives or goals. These goals are generally expressed in terms of        that investors are willing to assume and the         they expect to earn for risk-taking.

 

True or false: When considering performance at the fund level, the only activity that is relevant is the buying and selling of properties during a specific time period.

 

Select all that apply. Typically private real estate investment funds are created by real estate investment managers who develop an investment strategy involving which of the following?

 

The        method of calculating historical returns requires the use of beginning and ending values at each time interval in the time series. Answer using the appropriate acronym.

 

Differences in fund performance can be due to which of the following? Select all that apply.

 

A         return is an estimate of the rate of return that investors may expect to earn, provided by fund managers.

 

Appraised values can sometimes lag values reflected in transaction prices when:

 

True or false: TWR would be the best measure of the fund manager’s performance for an open end fund because a manager’s performance is not influenced by the investor’s decisions to get in or out of a fund.

 

       are significantly influenced by the dollar magnitude of cash flows and, consequently, are sometimes referred to as dollar-weighted returns.

 

The        is the rate that makes the net present value of an investment equal to zero. Answer using the appropriate acronym.

 

A        is used to document, identify and disclose to investors and investment strategies, the types of properties and locations where acquisitions will occur, exit strategies and so on.