One measure of expected return from real estate is the capitalization rate, the rate used to convert the earnings on a property into its estimated value. Assuming that you were interested in investing in real estate, which of the following scenarios would be your best opportunity to do so?
A.
High capitalization rates, High PE ratios, High bond default spreads
B.
High capitalization rates, Low PE ratios, Low bond default spreads
C.
High capitalization rates, High PE ratios, Low bond default spreads
D.
High capitalization rates, Low PE ratios, High bond default spreads