Capitalization rates will differ from yield rates when the income is expected to ________ over time.

Question

Quizplus · Accepted Answer

Capitalization rates are a measure of the annual return on an investment property, while yield rates take into account changes in income over time. If the income is expected to increase or decrease over time, this will affect the yield rate but not necessarily the capitalization rate. Therefore, choice D (Both B and C) is the best answer.

Capitalization Rates Will Differ from Yield Rates When the Income