e. CAGR (compound typical progress return). A capital investor is actually considering the net return received yr after calendar year, thus usage of geometric is a lot more appropriate. Hence we might use geometric ordinary for threat totally free amount and possibility high quality for each with the a few divisions, as given in exhibit 5 of the case.

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For illustration, when holiday vacation properties and professional Attributes have hardly any depreciation, most real-estate does have a big degree of depreciation.

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