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2A. Investors in a retail property require an 8.5% risk premium but the risk premium on the property is expected to be 5%. Assuming riskless

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2A. Investors in a retail property require an 8.5% risk premium but the risk premium on the property is expected to be 5%. Assuming riskless debt, what LTV ratio must the investors use to obtain the 8.5% risk premium? 2B. Now assume the risk-free interest rate is 4% and the debt has an interest rate of 6.5%

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