most likely 3

most likely 3. Compared with traditional investments, alternative investments are characterized by high: (a) Liquidity Leverage. (c) Regulation (d) Demand. 4. If properties in a certain market are typically selling for prices of $100/SF and they are current annual net income of $8/SF, then the typical "cap rate" prevailing in this market is: as12.50 (b) $8/SF. (c) 8%. (d) Cannot be estimated from the information given. 5. All the following are fundamental causal determinants of cap rates in the property ass market, except: (a) The opportunity cost of capital (as determined in the capital market). (b) The expected growth in property rents (as determined in the space market). (©) The risk perceived for the property (as determined in the space and capital market) (d) The net income divided by the property price.