CFA Practice Question

There are 195 practice questions for this study session.

CFA Practice Question

Which rate is the highest for an income producing property given both income and property value will grow at 2% annually?
A. discount rate.
B. mortgage rate.
C. cap rate.
Explanation: Discount rate = cap rate + 2%. Investing in the property is considered riskier than making a loan on the property - the mortgage rate should be lower than discount rate.

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