Concentrated portfolio strategies are attractive because of their:
A、 potential to generate alpha.
B 、ability to track market indices.
C、 low risk.
Compared with other investment asset classes, an investment in real estate is least likely to be characterized by:
B、 fixed location.
C 、basic indivisibility.
A is correct. Concentrated portfolio strategies focus on only a few securities, strategies, or managers. This focus reduces diversification but may enable investors to achieve alpha. B is incorrect. Portfolio concentration makes it harder to track market indexes. C is incorrect. Portfolio concentration increases risk.
A is correct. Because no two properties are identical, homogeneity is not a feature of an investment in real estate. B is incorrect. A fixed location is an attribute of a real estate investment. C is incorrect. Basic indivisibility is a unique feature of real estate investing