Question: Problem 1 2 - 3 3 CAPM and Valuation ( LO 3 ) You are considering the purchase of real estate that will provide perpetual

Problem 12-33 CAPM and Valuation (LO3)
You are considering the purchase of real estate that will provide perpetual income that should average $56,000 per year. How much
will you pay for the property if you believe its market risk is the same as the market portfolio's? The T-bill rate is 4%, and the
expected market return is 14.0%.
Property value
Problem 12-33 CAPM and Valuation (LO3) You are considering the purchase

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