Part a. If investors perceive that the risk associated with a property's annual net operating income is greater, would investors demand more or less return for taking on that investment?

Part b. Taking that return requirement into account, if you assumed that the property's net operating income remains constant, how would the investor achieve their desired return from the property's net operating income today?

a. Higher return; pay a higher price

b. Higher return; pay a lower price

c. Lower return; pay a higher price

d. Lower return; pay a lower price