A real estate asset has 11% return. Debt can be obtained at an interest rate of 12%.
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Question:
A real estate asset has 11% return. Debt can be obtained at an interest rate of 12%. Should you invest?
Question 12 options:
You should not borrow to invest in this asset
You should borrow to invest in this asset
It does not matter whether or not you borrow
There are no lenders to borrow from
Expert Answer:
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