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29. A potential investor in a property desires a 14% return but the long of property is expected to be 9% during the holding period. IF the observed in the market as 4%, what LTV will obtain the investor h a. 50% b. 60%

29. A potential investor in a property desires a 14% return but the long of property is expected to be 9% during the holding period. IF the observed in the market as 4%, what LTV will obtain the investor h a. 50% b. 60%

Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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29. A potential investor in a property desires a 14% return but the long-run return of this type of property is expected to be 9% during the holding period. IF the return to debt is observed in the market as 4%, what LTV will obtain the investor his desired return? a. 50% b. 60% C. 75% d. 80%
Transcribed Image Text:29. A potential investor in a property desires a 14% return but the long-run return of this type of property is expected to be 9% during the holding period. IF the return to debt is observed in the market as 4%, what LTV will obtain the investor his desired return? a. 50% b. 60% C. 75% d. 80%
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