Trifonovs formulas for calculation of the capitalization rate by method of risk accumulation

The paper develops the concept of capitalization rate which is used in the income approach valuation and presents a correct version of cumulative method of cap rate calculation. It is offered to use the risks independent from each other only. Authors classification of the risks based on the principle of externalities is described. Corresponding four-nomial formula contains exhaustive list of independent risks: risk-free rate, country risk, branch risk and subject one. The country risk is absent under valuation in local monetary unit. Monthly values of country risk for Belarus (by US dollar) which were defined with the Belarusian Society of Valuers since April, 2004 are resulted.