Does direct RE investing exhibit lower volatility of returns?
Jerry Tannenbach Case Scenario (CFA practice questions). Solution said that “An advantage of direct real estate investing is the low relative volatility of average real estate returns.”
Referenced Reading 30: Alternative Investments Portfolio Management Learning Outcome
- Describe advantages and disadvantages of direct equity investments in real estate
I have scoured the reading and nowhere does it say anything about direct real estate investing exhibiting lower volatility of returns.
Anyone know where the CFA curriculum talks about this?
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