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Two retail properties have the same net operating income and are considered to be very...

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Finance

Two retail properties have the same net operating income and are considered to be very similar in all respects except property B is more risky than property A. What should be true for the relationship between the overall capitalisation rate for the two properties?

a. The capitalisation rate for property B will be lower than for property A.
b. The capitalisation rate would not be affected by differences in risk.
c. The capitalisation rate for property B will be higher than for property A.
d. The capitalisation rate could be higher or lower depending on the type of ris

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