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Look at the diagram below for the Cushman & Wakefield Fair Value model for Frankfurt Offices. Required Return for Frankfurt Offices 9 SN 34 Additional

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Look at the diagram below for the Cushman & Wakefield Fair Value model for Frankfurt Offices. Required Return for Frankfurt Offices 9 SN 34 Additional premium 41 Additional premium 2 Additional peam1 19 Bare Required retum an 04 an 01 04 04 01 Ga 2010 02 os 2013 03 2012 03 2013 A. B. C. What is the base retum required and the 3 add premiums in this model? (2 marks) What are we trying to do in this model? (3 marks) Why does the base return and additional premium 3 move up and down while premiums 2 and 3 remain a constant size? (2 marks) What does this tell us about the pricing of property and what influences it? (3 marks) D Look at the diagram below for the Cushman & Wakefield Fair Value model for Frankfurt Offices. Required Return for Frankfurt Offices 9 SN 34 Additional premium 41 Additional premium 2 Additional peam1 19 Bare Required retum an 04 an 01 04 04 01 Ga 2010 02 os 2013 03 2012 03 2013 A. B. C. What is the base retum required and the 3 add premiums in this model? (2 marks) What are we trying to do in this model? (3 marks) Why does the base return and additional premium 3 move up and down while premiums 2 and 3 remain a constant size? (2 marks) What does this tell us about the pricing of property and what influences it? (3 marks) D

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