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Steps for a Rational Risk-Taker

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Discuss the steps a rational risk taker will follow in making a real estate investment decision.

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This solution discusses the steps a rational risk taker would follow in making a real estate investment decision.

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The main issue a rational risk taker will evaluate is if the projections show the investment decision is profitable, even though the decision may not be immediately profitable the first one to three years after the real estate investment decision has been made. Rational risk taking in real estate has seen changes in the past few years because of the economy. Property values have declined considerably due to a ...

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