Question: Why is the capitalization rate ( cap rate ) considered a measure of risk as well as return? Because properties with Migher perceived rick must
Why is the capitalization rate cap rate considered a measure of risk as well as return?
Because properties with Migher perceived rick must offer hlyher cap rates to metract impestors
Becaase it reflects the leverage used to acquire a property
Because it increases when a property's equity investment increases
Because it adjusts for appreciation and tax benefits
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