An employee of a company is about to retire and has to decide between various alternatives for investing the savings. The retiree will like a lifetime annual income of $$100,000$ before taxes. One of the options is to invest in a commercial building which will yield an estimated annual rent of $$100,000$ after all expenses. The market risk of commercial real estate is same as the market risk of TSX $500.$ The market premium of TSX $500$ is $6\%$ and the risk$-$free rate is $2\%.$ How much should the retiree pay at the limit for the commercial real estate?What could be the risk factors of investing all retirement savings in real estate? Explain. $($L$1)$