Question
Hotel investment is considered with a commensurate risk premium of 5.6%. The current market growth rate is 2%. Knowing that the risk-free rate in such
Hotel investment is considered with a commensurate risk premium of 5.6%. The current market growth rate is 2%. Knowing that the risk-free rate in such a market is 1.3%, what is the cap rate?
a) 5.6%
b) 4.9%
c) 3.3%
d) Impossible to calculate
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Governing Global Finance
Authors: Michele Fratianni, Paolo Savona
1st Edition
1138742147, 978-1138742147
