Recent Lessons

Show all results for ""

Feature Overview

Ace your exams with our all-in-one platform for creating and sharing quizzes and tests.

Free Tools

Explore our collection of AI-powered tools designed to boost your productivity.

Flashcards

Automatically turn your notes into digital flashcards.

Share, Export & Embed

Share with classmates or export to Excel and your learning management system.

Stats & Reporting

Auto-grading quizzes and tests with detailed stats and reports.

Mobile Apps

The smarter way to study – wherever you are.

Pricing Schools Business

Features Free Tools Pricing Schools Business

10 Questions

1 Views

Real Estate Diversification Strategies

Choose a study mode

Play Quiz

Study Flashcards

Spaced Repetition

Chat to Lesson

Podcast

Play an AI-generated podcast conversation about this lesson

Questions and Answers

What is the primary reason why direct real estate portfolios are not frequently rebalanced?

illiquidity of the assets and time lag between decision and implementation (correct)
lack of liquidity and high transaction costs
transaction costs and regulatory restrictions
tax implications and market volatility

Why do fund managers tend to follow a similar asset mix to their peers?

to minimize career risk (correct)
to hedge against inflation
to diversify their portfolios
to maximize returns

What is a consequence of real estate's illiquidity?

decreased volatility
increased liquidity
difficulty in rebalancing portfolios (correct)
increased correlation with other assets

Why is direct real estate not typically governed by market-wide factors?

because most portfolios hold fewer than 30 properties (D) Signup and view all the answers

What is a key characteristic of direct real estate investments?

long-term investment horizon (D) Signup and view all the answers

What is the implication of the combination of transaction costs and time lag?

difficulty in achieving an optimal portfolio (D) Signup and view all the answers

What is a perceived benefit of deviating from the normal market portfolio mix?

increased returns through risk-taking (C) Signup and view all the answers

Why do real estate portfolios often hold few properties?

due to the poor diversification of real estate (A) Signup and view all the answers

What is the relationship between real estate and market-wide factors?

real estate is influenced by real estate-specific factors (A) Signup and view all the answers

What is the potential consequence of assuming an abnormal exposure to real estate?

career risk through non-conformity (D) Signup and view all the answers