Question 4 Suppose the Sam Sell Select Fund buys property at the end of 1998...

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Question 4 Suppose the Sam Sell Select Fund buys property at the end of 1998 for $8,500,000 on behalf of its wealthy investor clients. At the end of 1999 the fund sells the property for $10,750,000 after obtaining net cash flow of $850,000 at the end of 1999. Suppose inflation during 1999 was 4.5% and the government bonds yielded 4.5%. Consider the simple holding period returns for the 1999 calendar year period. Compute the following measures: a. The nominal income return b. The nominal appreciation return c. The nominal total return d. The ex-post risk premium e. The real appreciation return

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