Normally, in a Healthy Rental Market, One Would Expect What

question 1

Multiple Choice

Normally, in a healthy rental market, one would expect what relationship between the "going-in" and "going-out" cap rate?

• A) The going-in cap rate should be higher than the going out.
• B) The going-out cap rate should be at least as high as the going-in rate.
• C) There is no particular relation between the two.
• D) The going-out cap rate is too far in the future, and should not be estimated.

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Definitions:

Hyperopia

A defect of vision so that objects can only be seen when they are far away; farsightedness.

Farsightedness

A common vision condition, also known as hyperopia, where distant objects are seen more clearly than close ones.

Tympanic Membrane

The eardrum.

Eardrum

A thin membrane that separates the outer ear from the middle ear and vibrates in response to sound waves.