The Expected Return on an Investment in a Property Is

question 6

Multiple Choice

The expected return on an investment in a property is inversely related to the price you pay for the property fundamentally because:

• A) The future cash flows the property can generate are independent of the price you pay for the property today.
• B) The return must include a risk premium.
• C) Inflation must be subtracted out.
• D) The investor faces a budget constraint.

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