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The Use of Financial Leverage When Investing in Real Estate

Question 32

Multiple Choice

The use of financial leverage when investing in real estate is a double-edged sword. While increased leverage may allow the investor to "purchase" higher expected returns, the "price" of doing so is an increase in which of the following risks?


A) Liquidity risk
B) Default risk
C) Interest rate risk
D) Pipeline risk

Correct Answer:

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