Properties of real estate returns affect portfolio risk

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1. When adding real estate to an asset allocation program that currently includes only stocks, bonds, and cash, which of the properties of real estate returns affect portfolio risk? Explain.

2. How does the magnitude of firm specific risk affect the extent to which an active investor will be willing to depart from an indexed portfolio?

3. Present Value of an Annuity Due If the present value of an ordinary, 5-year annuity is $6,100 and interest rates are 8 percent, what's the present value of the same annuity due?

Reference no: EM131993655

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