Question: Suppose two buildings located in the same city with the exact same NOI recently sold. If one sold at a capitalization rate of 11% while

  1. Suppose two buildings located in the same city with the exact same NOI recently sold. If one sold at a capitalization rate of 11% while the other sold at 6.5%, which of the two projects do you think is a riskier investment? Briefly explain why. (10 pts)

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