Question: a. According to this analysis, what is the probability that you will earn a positive nominal return on your investment? b. According to this
a. According to this analysis, what is the probability that you will earn a positive nominal return on your investment? b. According to this analysis, what is the probability that you will earn a return that is equal or higher than your required return? c. Given today's real estate and interest rate market environments, what is the problem with defining a Terminal CAP" with a normal distribution? Suggest a different kind of distribution that might be more suitable and explain how this distribution is likely to affect your IRR output compared with a normal distribution. Will it increase the chance that you will earn your required rate of return?
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