Question: If the analyst expects interest rates and the return on other assets to increase while owning and operating a property but growth (appreciation) rates on

If the analyst expects interest rates and the return on other assets to increase while owning and operating a property but growth (appreciation) rates on real estate to remain relatively stable, one would expect:

a. the spread between the going-in cap rate and the going-out cap rate to narrow.

b. the spread between the going-in cap rate and the going-out cap rate to widen.

c. there to be no specific relationship between the going-in and going-out cap rates in this scenario.

d. the spread between the going-in cap rate and the going-out cap rate to be unchanged.

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