Please answer the following Alternative Investment questions.... Attempt all parts and attempt only if you are sure about your answers.... Else skip it Thanks!

ITEM SET-2 Jennifer Martin, CFA, is the owner of Martin Investment Management Inc. . boutique m dal specializes in managing money for high net worth individuals. The firm specializes in eal and private equity investments Martin has three client meetings today The first meeting is with Larry Smith. Smith is interested in a portfolio of private equity real estas as a long-term investment. Specifically, he is interested in the risk-return characteristics of privats equity real estate portfolios versus those of stock portfolios. Martin advises Smith that r equily real estate portfolios are generally riskier than stock portolios and the expected rehms ae lower. Martin learns that Smith's long-term goal when he retires is to purchase a mutifamaily peoperty For esample, there is one such property currently listed on the market. He plans on living in one unit and renting out the rest. The rental income would provide Smith with the cash flow that he needs in his retirement. He asks Martin to value the property based on the assumptions that the ne operating income is $125,000, the discount rate is 11%, and the growth rate is 6%. Martin,adat, use the direct capitalization method to value the property Martin's second meeting is with Andre Metcalfe, an executive at a large national bank Metcalfe is interested in investing in publicly traded real estate securities. In particular, he is intenessed in investing in securities that generate cash flow primarily from the sale of properties Martin males a recommendation after doing some research Metcalfe asks Martin about economic factors that affect the valse of real estate investment tr (REITs) that invest in different types of properties. Martin makes the following siatements egarding key economic drivers of the value of various REITs available in the market Statement 1: Job creation is less of a driver of value for industrial REITs than for office and storage RETs tatement 2 Retail sales growth is less of a driver of value hor office REITs industrial and storage REITs is less of a driver of value for industrial and office REITs in's third meeting is with James Wole, who is interested in nesting in ventur capialor Mon financially very comfortable and is thas wiling lo tko r Rcently recvived some information about a new venture copital deal lin ompany that may be of interest to Wolfe Information about the sotwas or pavate equity funds. He is has e apital deal ss provided in Exhibit 1 63