True or False: If a house in New York and a house in California are identical in

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True or False: If a house in New York and a house in California are identical in every way except for the fact that the California house is susceptible to being destroyed by earthquakes, then the California homeowner must earn a greater rate of return than the New York homeowner to compensate him for the risk. Therefore, houses in California will increase in value more rapidly than houses in New York.

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