CFA Practice Question
The Return calculated with the formula, (NOI - Capital expenditures + Ending market value - Beginning market value)/ Beginning market value, is similar to the following measures EXCEPT FOR ______.
B. cap rate.
C. single-period IRR.
A. holding period return.
B. cap rate.
C. single-period IRR.
Correct Answer: B
Cap rate is NOI/ Beginning market value.
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