Given the following correlation matrix of total returns, how successful do you think you would be at using portfolio theory to build a diversified real estate portfolio? Explain.

Utilizing principles of economic geography, what conclusions can you draw about these metro areas economic compositions and opportunities for investment in a portfolio.

Assume the following about metro size:

Chigerburg large metro, roughly 7 million people

Wangtown large metro, roughly 4 million people

Careyville medium-size metro, roughly 950,000 people

Chenboro small metro, roughly 50,000 people

Correlation Matrix
	Chigerburg	Wangtown	Careyville	Chenboro
Chigerburg	1
Wangtown	0.8	1
Careyville	0.5	-0.1	1
Chenboro	-0.4	0.2	-0.9	1