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For the purpose of analyzing the interval to generally be in comparison for chance absolutely free return and threat premium, investment decision lifetime of the venture need to be regarded. Mainly because lodging belongings, like motels, had extended helpful lives, return on extended-term government bonds needs to be utilized for lodging calculations, which should be with the time period 1926 to 1987 (show 5 from the case) as this proficiently demonstrates The underside line mother nature of return having a long run check out including all abnormalities through this period.
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