12. An investor just purchased an office building for $100,000. He knows for certain that he can sell the building for $110,000 in 5 years. About how much does he need to charge in annual rent in order to achieve a 15% annual return on the deal?

A. $20,500

B. $2,500

C. $8,000

D. $13,500

17. REIT B (REIT is a real estate investment trust) stock had returns of 12 percent, 6 percent, 14 percent, and -3 percent annually for the past four years. What is the mean and standard deviation of these returns?

A. 7.25%; 11.08%

B. 8.75%; 9.11%

C. 7.25%; 13.22%

D. 7.25%; 7.63%

E. 8.75%; 10.29%

18. REIT C (REIT is a real estate investment trust) had returns of 14 percent, 3 percent, 9 percent, and -12 percent annually for the past four years. What is the mean and standard deviation of these returns?

A. 3.50%; 11.26%

B. 9.50%; .0100

C. 3.50%; .0381

D. 3.50%; .0069

E. 9.50%; .0033

19. What are the arithmetic and geometric average returns for a REIT X with annual returns of 4 percent, 12 percent, -8 percent and 9 percent?

A. 8.25%; 8.21%

B. 4.25%; 3.96%

C. 8.25%; 6.25%

D. 8.25%; 7.89%

E. 4.25%; 4.89%

20. What are the arithmetic and geometric average returns for a Property D with annual returns of 11 percent, 14 percent, -2 percent and 6 percent?

A. 7.25%; 7.37%

B. 7.25%; 7.08%

C. 8.25%; 8.15%

D. 7.25%; 8.15%

E. 8.25%; 7.89%