21-15.The "smoothing" of real estate asset returns estimated from appraised values refers to:

Question

Quizplus · Accepted Answer

The "smoothing" of real estate asset returns estimated from appraised values refers to the fact that appraised property values do not fluctuate as much as transaction values. This may occur because appraisals are typically based on a range of factors beyond just recent transaction prices, such as physical characteristics, location, and market trends. As a result, appraised values may reflect a more stable, long-term perspective on property values than transaction values, which can be affected by short-term market volatility.

21-15The "Smoothing" of Real Estate Asset Returns Estimated from Appraised