7. Based on the analysis in Question 6, explain in-detail on the inter-asset correlations concerning portfolio diversifi- cation for the following scenarios:

• are A-REITs property or shares?
• which combinations of capital cities offer (1) the best and (2) the worst direct property diversification benefits?
• if an investor has a rudimentary portfolio of shares and bonds, does the inclusion of direct property enhances diversification benefits?