1. What is the capitalization rate (cap rate) of a property

that generates net operating income (NOI) of $120,000 per

year and has a market value of $1.5 million?

A) 8%

B) 10%

C) 12%

D) 15%

Answer: A) 8%

Rationale: The cap rate is the ratio of NOI to market value.

Cap rate = NOI / market value = $120,000 / $1,500,000 =

0.08 or 8%.

2. Which of the following is an example of a nontraditional

real estate asset class that has been gaining popularity

among investors in recent years?

A) Student housing

B) Data centers

C) Healthcare offices

D) All of the above

Answer: D) All of the above

Rationale: Nontraditional real estate asset classes are those

that are not typically considered as core or mainstream

investments, such as office buildings, retail centers,

industrial properties, or apartments. However, some

nontraditional asset classes have been attracting more

attention and capital from investors due to their higher

yields, lower correlation with other assets, and growing

demand. Examples include student housing, data centers,

healthcare offices, medical facilities, and assisted-living

communities.