16 1 point Capital market risk is affected by changes in the following EXCEPT for: The level of interest rates The rate of return for alternative investment opportunities The supply of space from new construction The availability of mortgage and equity capital 17 1 point The following are characteristics of positive leverage EXCEPT for: The equity rate of return decreases as the loan-to-value ratio increases O When cash flow leverage is positive, the equity capitalization rate increases at an increasing rate Each dollar borrowed increases the rate by more than the previous dollar borrowed Leverage is positive when we can earn more on the property than it costs to borrow 18 1 point All of the following are legislative risk factors EXCEPT for: Change in land use regulation Tax law changes Costs of dealing with environmental problems Ability to get permits All of the above are legislative risk factors