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NEW QUESTION: 2
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A. 0
B. False
C. None
D. True
Answer: D

NEW QUESTION: 3
Which of the following is a valid reason for including real estate in an investment portfolio?
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B. Real estate investments have lower risk than stocks.
C. Real estate returns have low correlations with stock and bond returns.
Answer: C
Explanation:
Real estate returns exhibit low correlations with stock and bond returns. Real estate returns depend on the cash flows from the real estate and changes in its value. However, real estate investments generally have relatively low liquidity. In addition, real estate transactions involve large transaction costs and typically have high levels of property-specific (firm-specific) risks.

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