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Which of the following statements regarding cap rates on commercial real estate investments is the most correct? Group of answer choices Cap rates vary inversely
Which of the following statements regarding cap rates on commercial real estate investments is the most correct?
Group of answer choices
Cap rates vary inversely ie move in the opposite direction with the perceived risk of the investment.
Cap rates vary positively ie move in the same direction with the perceived risk of the investment.
Cap rates tend to decrease when yields on longterm Treasury securities increase.
Cap rates tend to increase when the expected growth rate in net rental income increases.
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