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Question 7 You are evaluating three properties for a possible equity investment. The asking cap rate is 6% for all three properties, and you believe
Question 7 You are evaluating three properties for a possible equity investment. The asking cap rate is 6% for all three properties, and you believe that all three properties are priced fairly (are not under- or over-priced). Your NOI growth and asset beta projections for these properties are as follows: Options Which of the following statements must be true?| (a) Expected NOI growth for property Y is lower than 2%. (b) Asset beta for property Z is lower than 0.8. (c) Asset beta for property Z is lower than 0.7. (d) Expected NOI growth for property Y is higher than 3%. (e) Property X is the highest risk property. Question 7 You are evaluating three properties for a possible equity investment. The asking cap rate is 6% for all three properties, and you believe that all three properties are priced fairly (are not under- or over-priced). Your NOI growth and asset beta projections for these properties are as follows: Options Which of the following statements must be true?| (a) Expected NOI growth for property Y is lower than 2%. (b) Asset beta for property Z is lower than 0.8. (c) Asset beta for property Z is lower than 0.7. (d) Expected NOI growth for property Y is higher than 3%. (e) Property X is the highest risk property
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