Which is the most correct when considering cap rates

a. Cap rates have no effect on the value of a property

b. When cap rates increase, property values tend to decrease

c. Cap rate move inversely to interest rates

d. When cap rates increase, property values also increases

e. Cap rates are relevant to the whole market and not to a particular property

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Which of the following is the most significant weakness of using stabilized NOI to valuate a property

a.it assumes that the property is unleveraged (has no debt)

b.It ignores income taxes

c.It assumes no growth in NOI

d.it assumes perpetual growth in revenue

e.It assumes theoretical operating expenses