Why Might It Be Argued That Corporations Do Not Have

question 27

Multiple Choice

Why might it be argued that corporations do not have a comparative advantage when investing in real estate as a means of diversification from the core business?

• A)Corporations cannot react as quickly as individual investors to changes in market conditions
• B)Corporations do not typically hold real estate in a large number of geographic areas and may not hold a variety of different types of properties
• C)Corporations often use property managers who do not understand financial markets
• D)Diversification dilutes a corporations risk-return profile and does not provide an advantage to corporations

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