CFA CFA Level 2 Volume 5. Alternative Investments. Reading 38. First practice problem. Error?

Volume 5. Alternative Investments. Reading 38. First practice problem. Error?

  • This topic has 1 reply, 2 voices, and was last updated Jan-18 by Pranav.
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    • agent1
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      Hi all,

      Thinking that I may have spotted an error: the numbers just don’t make sense to me. Could someone please validate/disagree on that?

      In the first practice reading of Reading 38, the Potential Gross Income of the first property is $5,130,000. The vacancy loss is $513,000. And the effective gross income is $5,079,000.

      Should be: Potential gross income – vacancy loss = effective gross income !!!

      Thanks

    • Pranav
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      @agent1‌ 
      wow, you reached reading 38 already?

      back to your question: what you are saying is right…looks like a calculation mistake there…if you see the calculation for the other two Properties, your formula seems right…

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