Portfolio Analysis Flashcards
7 cards from real ASC practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Portfolio Analysis flashcards as text
In ARGUS Enterprise portfolio analysis, what does the 'Portfolio IRR' metric represent?
Answer: The blended internal rate of return across all portfolio assets over the hold period
Portfolio IRR blends cash flows from all assets to measure the overall return rate for the entire portfolio over its hold period.
When aggregating properties in ARGUS Enterprise, which setting ensures that vacancy assumptions are not double-counted at the portfolio level?
Answer: Set global vacancy to zero and model it at the asset level only
Vacancy should be modeled at the individual asset level; setting global portfolio vacancy to zero prevents double-counting when rolling up results.
Which ARGUS Enterprise report allows a user to compare levered vs. unlevered returns across multiple portfolio assets simultaneously?
Answer: Portfolio Returns Dashboard
The Portfolio Returns Dashboard in ARGUS Enterprise consolidates levered and unlevered return metrics (IRR, equity multiple, NPV) across all portfolio assets for side-by-side comparison.
In a portfolio scenario analysis, what is the purpose of applying a 'global cap rate shift' in ARGUS Enterprise?
Answer: To stress-test exit values by uniformly adjusting terminal cap rates across all assets
A global cap rate shift stress-tests how a uniform change in exit cap rates affects the terminal value and returns of every asset in the portfolio.
What does a negative portfolio-level equity multiple indicate in ARGUS Enterprise?
Answer: The investor lost equity — total distributions returned less than total equity invested
An equity multiple below 1.0x (negative in net terms) means total distributions to equity are less than the original equity invested, indicating a loss.
When running a portfolio waterfall in ARGUS Enterprise, which tier typically receives distributions first?
Answer: Preferred return to the LP
In a standard equity waterfall, LPs receive their preferred return before any promoted interest or residual splits are distributed to the GP.
In ARGUS Enterprise portfolio analysis, what is the effect of increasing the hold period from 5 to 10 years on the portfolio IRR, assuming stable NOI growth?
Answer: IRR impact depends on the relationship between in-place yield and terminal cap rate
Whether a longer hold increases or decreases IRR depends on whether in-place income yield is above or below the terminal cap rate and market conditions at the extended exit date.