4. Real Estate sample question
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CFA Level I sample question
CFA Level I 4. Real Estate question
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4. Real Estate
An investor buys a property for USD10 million using USD4 million of equity and USD6 million of interest-only debt. During the year, the property produces NOI of USD550,000, interest expense is USD360,000, and the property value rises to USD10.8 million. Ignoring transaction costs and taxes, the investor equity return is closest to:
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