When modeling the expected return of an income producing property, why should it be defined, for example, a correlation of -0.60 between the NOI growth and the vacancy rate? a. To increase the probability that the computer draws higher values of NOI growth when it draws higher values of vacancy, from their respective distributions, and vice versa. b. To increase the probability that the computer draws lower values of NOI growth when it draws lower values of vacancy, from their respective distributions, and vice versa. c. To increase the probability that the computer draws lower values of NOI growth when it draws higher values of vacancy, from their respective distributions, and vice versa. d. Both “b” and “c” e. To increase the probability that the computer draws NOI growth values that are 60% as large as the vacancy values.
When modeling the expected return of an income producing property, why should it be defined, for example, a correlation of -0.60 between the NOI growth and the vacancy rate?
a. To increase the probability that the computer draws higher values of NOI growth when it draws higher values of vacancy, from their respective distributions, and vice versa.
b. To increase the probability that the computer draws lower values of NOI growth when it draws lower values of vacancy, from their respective distributions, and vice versa.
c. To increase the probability that the computer draws lower values of NOI growth when it draws higher values of vacancy, from their respective distributions, and vice versa.
d. Both “b” and “c”
e. To increase the probability that the computer draws NOI growth values that are 60% as large as the vacancy values.
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