You are trying to access some ideas and/or ways the markets or asset pricing should operate in a normal market and come across some questions that you discuss with your co-worker Mary 1. You see a large glut of commercial real estate in your town and a realtor you know talks to you about buying a small strip mall at a discount rate of 10%. You toss the idea around with Mary and here are the choices you decide on. Which one would you pick? A. 10% is a nice return given the 1% T note rate which implies a spread of 9%, and if you wanted a return of 12% you would be paying more for the strip mall B. Having low vacancy affects revenues which will affect the denominator of valuation models. C. Real estate is not a good investment under any circumstances D. If I feel there is way more risk than my realtor says than I should want a return or discount rate of let's say 15% or more meaning I'd pay less than the original asking price. E. None of the above