You are given the following correlations between property types. If you were asked to build a portfolio with two assets of these types, from which types would you choose your assets and why? Apartments Houses Retail Offices Industrial Hotels Apartments 1 Houses 0.98 Retail 0.89 0.87 1. Offices 0.78 0.75 0.82 Industrial 0.88 0.85 0.93 0.87 Hotels 0.86 0.79 0.72 0.89 0.41
You are given the following correlations between property types. If you were asked to build a portfolio with two assets of these types, from which types would you choose your assets and why? Apartments Houses Retail Offices Industrial Hotels Apartments 1 Houses 0.98 Retail 0.89 0.87 1. Offices 0.78 0.75 0.82 Industrial 0.88 0.85 0.93 0.87 Hotels 0.86 0.79 0.72 0.89 0.41
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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![d. You are given the following correlations between property types. If you were asked
to build a portfolio with two assets of these types, from which types would you choose
your assets and why?
Apartments Houses
Offices Industrial Hotels
Retail
Apartments
1
Houses
0.98
1
Retail
0.89
0.87
1
Offices
0.78
0.75
0.82
Industrial
0.88
0.85
0.93
0.87
1
Hotels
0.86
0.79
0.72
0.89
0.41](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F1d142c24-d87b-4125-836e-12ad81745ff1%2Fedea6464-068e-432d-bad5-441a6ba2df82%2Fvhzeji9_processed.png&w=3840&q=75)
Transcribed Image Text:d. You are given the following correlations between property types. If you were asked
to build a portfolio with two assets of these types, from which types would you choose
your assets and why?
Apartments Houses
Offices Industrial Hotels
Retail
Apartments
1
Houses
0.98
1
Retail
0.89
0.87
1
Offices
0.78
0.75
0.82
Industrial
0.88
0.85
0.93
0.87
1
Hotels
0.86
0.79
0.72
0.89
0.41
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