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Define leverage. Explain how leverage can be used to increase the value of equality in a real estate investment. Discuss the concept of optimal capital

  1. Define leverage. Explain how leverage can be used to increase the value of equality in a real estate investment.
  2. Discuss the concept of optimal capital structure as it pertains to real estate investments.
  3. Define options and give several examples of options in real estate.
  4. List three services provided by financial intermediaries.
  5. Explain how financial intermediaries can be exposed to interest rate risk.

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