The required rate of return that an individual demands on a real estate investment is determined in the:

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The required rate of return on a real estate investment is determined in the capital market. The capital market includes sources of funding such as banks, mortgage lenders, and private equity investors who provide the funds for real estate investments. The required rate of return is the minimum return that an investor expects to receive in order to compensate for the risks associated with the investment. This rate is impacted by the current economic conditions, interest rates, and the perceived risk of the investment.

The Required Rate of Return That an Individual Demands on a Real