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CFA Level 3
Alternative Investments

Identify Key Risk in Real Estate Investment

Medium Real Estate Investment Risk Considerations

As an investment advisor, you are analyzing a real estate investment project that involves the acquisition of a mixed-use development. The project is expected to generate stable rental income and potential appreciation over time. However, it is crucial to identify the inherent risks associated with real estate investments.

Which of the following risks should you be most concerned about in relation to fluctuating real estate markets?

Hint

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