1. The natural vacancy rate in a property sector (check all that apply):
A. Is influenced by the length of lease contracts
B. Is influenced by the barriers to information collection regarding market rents
C. Is influenced by the time-to-build considerations
D. Is constant across geographic regions of the country (a "no arbitrage" condition)
E. None of the above
2. True or False: Property markets return to equilibrium at the same speed regardless of a positive or negative economic shock.
A. True
B. False
3. True or False: In markets with more cap rate volatility, construction occurs less frequently and with more delays.
A. True
B. False
4. True or False: Modeling investment as dynamic decisions can lead to over-building of real estate, despite all participants acting in their rational self-interest.
A. True
B. False