most likely 3. Compared with traditional investments, alternative investments are characterized by high: (a) Liquidity Leverage. (c) Regulation (d) Demand. 4. If properties in a certain market are typically selling for prices of $100/SF and they are current annual net income of $8/SF, then the typical "cap rate" prevailing in this market is: as12.50 (b) $8/SF. (c) 8%. (d) Cannot be estimated from the information given. 5. All the following are fundamental causal determinants of cap rates in the property ass market, except: (a) The opportunity cost of capital (as determined in the capital market). (b) The expected growth in property rents (as determined in the space market). () The risk perceived for the property (as determined in the space and capital market) (d) The net income divided by the property price