Consider the REIT valuation spreadsheet presented in class. For each of the following scenarios,

and all other things equal, determine whether each scenario will increase, decrease or won$$t

affect the probability that new investors will achieve their levered required rate of return.

a$.$ A distribution is defined for NOI growth rate, where the average value remains the same, but

the right $$tail$$ of the distribution is longer than the left $$tail$.$

b$.$ The quality adjustment value is lower.

c$.$ The risk premium is lower.

d$.$ The current market cap is higher.

e$.$ The price of the REIT is lower.

f$.$ The projected $10-$year treasury rate is higher.