Question: In looking at the relationship between the cap rate and the required rate of return ( i . e . , the discount rate )
In looking at the relationship between the cap rate and the required rate of return ie the
discount rate the required rate of return is equal to the cap rate if:
the expected general inflation in the economy is zero.
the expected appreciation of the property's value is zero.
the expected income yield, NOIV on the property is zero.
All of the statements are true.
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