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Which of the following conditions must prevail for valuations using simple direct capitalization to be very close to more complex income valuation methods?

$(1)$ The ratio of the forecasted capital cost allowance recapture to the total capital cost allowance $(2)$ is similar between the subject and the comparable properties.

$(3)$ Anticipated holding periods for the subject property and the comparables should be similar. Forecasted future periodic changes in NOI for the subject and the comparable sales should be $(4)$ All of the above.

$8.$ Which of the following goods and services is subject to the GST$/$HST$?$

$(1)$ Zoning or assessment information provided by the government

$(2)$ Dining, recreational, and sport club membership fees

$(3)$ Services rendered by insurance companies, agents, and brokers

$(4)$ Sale of a $25-$year old residential home that was newly renovated, but not substantially

$9.$ What is the effective annual interest rate that is equivalent to a rate of $3\%$ per annum, compounded semi$-$annually?

$(1)3\mathrm{.}530625\%$

$(2)3\mathrm{.}022500\%$

$(3)3\mathrm{.}556667\%$

$(4)2\mathrm{.}515625\%$

$10.$ Assume a $$900,000$ property is purchased with a $70\%$ loan$-$to$-$value ratio. The mortgage is written at $j_1=6\%,$ with annual payments over a $15-$year amortization period. The annual net operating income of the property is $$75,000.$ What is the before$-$tax equity return of this investment?

$(1)7\mathrm{.}50\%$

$(2)4\mathrm{.}65\%$

$(3)5\mathrm{.}32\%$

$(4)3\mathrm{.}75\%$

$11.$ Which of the following BEST defines intra$-$market diversification?

$(1)$ It is the formation of real estate portfolios consisting of properties located in different real estate markets with the return on these assets not having high levels of positive correlation.

$(2)$ It is the acquisition of different properties within a particular local market whose property returns are not closely related.

$(3)$ It is the portion of the return variability that cannot be offset through diversification.

$(4)$ It is also known as the market price of risk.

$12.$ Which of the following is NOT a potential advantage of real estate syndication?

$(1)$ Diversification of risk

$(2)$ Increased equity participation

$(3)$ Structural flexibility

$(4)$ Financial leverage

$13.$ Which of the following statements regarding competitive$/$efficient real estate markets is FALSE?

$(1)$ In a competitive real estate market, there are many buyers and many sellers in the market and the goods offered by the various sellers are largely the same.

$(2)$ Perfect competition assumes free entry and exit of resources and participants.

$(3)$ In an efficient market, there are many real estate investments with high returns and low risk.

$(4)$ In a competitive real estate market, prices fully capitalize any information affecting the value of real estate assets.

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