4. Investment Analysis

Performance Metrics — Quiz

Test your understanding of performance metrics with 5 practice questions.

Practice Questions

Question 1

Which key performance indicator measures a property's ability to cover its debt obligations from net operating income?

Question 2

If a property has a net operating income of $200,000 and annual debt service of $150,000, what is its debt service coverage ratio (DSCR)?

Question 3

What does the operating expense ratio (OER) measure in property performance metrics?

Question 4

If a property's effective gross income is $500,000 and its operating expenses are $150,000, what is the operating expense ratio?

Question 5

Which performance metric expresses the relationship between net operating income and property value?