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Explain proxy to use for risk in real estate investments

The risk for real estate can be viewed as a derived demand. If this is the case, the risk of real estate can be estimated from the underlying business it supports. Under this view, what would be the appropriate proxy to use for risk in the following types of real estate investments? a. Commercial real estate in New York. b. Commercial real estate in Houston. c. Commercial real estate in San Jose (Silicon Valley). d. Hotel complex in Orlando.

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Solution Preview :

Prepared by a verified Expert

Finance Basics: Explain proxy to use for risk in real estate investments

Reference No:- TGS0557515

Have a Question? (oR Write a Review)

Recent Questions Asked Finance Basics

Q : Required rates of return of moe corporation

Q : How to reconcile the two estimates

Q : Why is the note zero-interest-bearing

Q : Expected rate of return for portfolio manager

Q : Explain proxy to use for risk in real estate investments

Q : Explain stock that sell for less than book value-undervalued

Q : Value of bond of trooper corporation

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Solution Preview :

Prepared by a verified Expert

Finance Basics: Explain proxy to use for risk in real estate investments

Reference No:- TGS0557515

Recent Questions Asked Finance Basics

Q : Required rates of return of moe corporation

Q : How to reconcile the two estimates

Q : Why is the note zero-interest-bearing

Q : Expected rate of return for portfolio manager

Q : Explain proxy to use for risk in real estate investments

Q : Explain stock that sell for less than book value-undervalued

Q : Value of bond of trooper corporation

Q : Stock valuation-single period

Q : Stock valuation-finite periods

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