Trevor purchased a property with a $50\mathrm{.}0\%$ loan$-$to$-$value ratio, and the mortgage capitalization rate was $8\mathrm{.}0\%.$ Trevor expected a $10\mathrm{.}0\%$ capitalization rate for his portion of the investment, and a $9\mathrm{.}0\%$ overall capitalization rate on the property. Based solely on the information provided, why is the equity capitalization rate higher than the mortgage capitalization rate?

This is unanswerable.

Because Trevor always achieves the highest returns.

All else equal, Trevor is Presumably taking less risk than his bank, and he should be compensated in the form of a higher return.

All else equal, Trevor is presumably taking more risk than his bank, and he should be compensated in the form of a higher return.