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I . 8 Suppose the risk free rate of return is 6 % , and the expected total return on the property is 8 %

I.8 Suppose the risk free rate of return is 6%, and the expected total return on the property is 8%, and you have a target total expected return of 10%. Assuming you can borrow at the riskfree rate, what Loan/Value ratio must you obtain for this real estate investment to meet your target expected return?
a.30%
b.40%
c.50%
d.60%

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