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Trevor purchased a property with a 50.0% loan-to-value ratio, and the mortgage capitalization rate was 8.0%. Trevor expected a 10.0% capitalization rate for his portion
Trevor purchased a property with a 50.0% loan-to-value ratio, and the mortgage capitalization rate was 8.0%. Trevor expected a 10.0% capitalization rate for his portion of the investment, and a 9.0% overall capitalization rate for the property. If Trevor paid off the mortgage, would he increase or decrease his return? O A. Trevor's investment would be more risky if the mortgage was paid off. B. Trevor would decrease his return if the mortgage was paid off. O C. Trevor would increase his return if the mortgage was paid off. O D. Trevor's investment would be less risky if the mortgage was paid off.
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