A portfilio containing REITS often gives diversification benefits because; O Real estate investment returns are highly correlated with returns for stocks Real estate investment returns are not highly correlated with returns for stocks Real estate investment returns are not subject to federal income taxes O Real estate investment returns do not change much from year to year

A portfilio containing REITs often gives diversification benefits because; Real estate investment returns are highly correlated with returns for stocks Real estate investment returns are not highly correlated with returns for stocks Real estate investment returns are not subject to federal income taxes Real estate investment returns do not change much from year to year It is helpful to "partition" the rate of return to obtain some idea as to the relative weights of the components of the return and some idea as to the timing of the receipt of each compenent. True False Because real estate does not typically decline in value as fast as accounting depreciation and rarelyever has zero value at the end of a typical lease term, assuming so would biase the lease-versus-own decision toward owning. True False A property could be sold today to provide an after-tax cash flow from sale of $750,000. The cash flow from operations is $25,000, which is expected to grow by 10% per year. If sold next year, the property is expected to provide an after-tax cash flow of $825,000. What is the marginal rate of return for holding the property for an additional year? 10.3% (B) 3.7% (C) 7.4% 10% A property could be sold today to provide an after-tax cash flow from sale of $750,000. The current after-tax cash flow from operations is $25,000, which is expected to grow by 10% per year. If sold next year, the property is expected to provide an after-tax cash flow of $825,000. What is the marginal rate of return for holding the property for an additional year? 10.3% (B) 3.7% (C) 7.4% (D) 10%