1. The potential risks in a real estate investment include:
a. Liquidity risk, capital markets risk, legislative risk
b. Business risk, financial risk, management risk
c. Interest rate risk, environment risk, market risk
d. All of the above
2. If a particular desirable site is a 100’ by 80’ rectangular shape, and if the local zoning codes require that the building’s footprint be setback ten feet from each side of the property line, and if the FAR for that site is 4.0 per square foot of the building’s footprint. What is he maximum building square footage that can be built?
a. 72,000
b. 51,200
c. 18,000
d. 15,300