An analyst at a real estate investment management firm seeks to establish expectations for rate of return

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An analyst at a real estate investment management firm seeks to establish expectations for rate of return for properties in the industrial sector over the next year. She has obtained the following information:

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Estimate the expected return from the industrial sector properties based on the data provided.

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Portfolio Management In Practice Volume 1

ISBN: 9781119743699

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Authors: CFA Institute

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Question Posted: Mar 26, 2024 12:00 AM

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An analyst at a real estate investment management firm seeks to establish expectations for rate of return

Question:

Current industrial sector capitalization rate ("cap" rate) Expected cap rate at the end of the period NOI growth rate (real) Inflation expectation 5.7% 5.5% 1% 1.5%

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To estimate the expected return from the industrial sector properties we can use the Capital Asset P...View the full answer

Portfolio Management In Practice Volume 1

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