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QUESTION 8 To use the direct capitalization method, one needs a cap rate. Which of the following best describes this? Ch10 Similar to a risk
QUESTION 8 To use the direct capitalization method, one needs a "cap rate". Which of the following best describes this? Ch10 Similar to a "risk free" rate usually found by reference to the treasury market A rate determined by each state (in the state capital) The risk adjusted rate that a specific investor uses to estimate their expected return - also referred to as the required rate of return A market determined rate based on transactions reflecting the relationship of property cash flows to prices paid
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