Sharpe ration in the financial market: u-rf S = Sharpe ration in the real estate market from Cheng, Lin and Liu (2013-FR): u-rf SRE = (t+troM) (8) 0 +208 (1-3)+ (x + (3T) 0) o TOM+0 (1-1) (t+tTOM) 3. [5 points] Cheng, Lin and Liu (2017-JRER) develop the mixed-asset portfolio by extending the Modern Portfolio Theory (MPT) as follows, minWRE, WL, T Briefly discuss the difference between these two models and explain why the real estate should have its own asset allocation model. {WRE [(URE + B ORE) FROM + (8T + (1 B) + 28 (1 1 B) T) ORE ] + wT0, +2pWREWZ [(1-8) +BT\TORBOL, :}. .s.t. WRETURE + WLTUL + (1-WRE - WL) Sharpe ration in the financial market: u-rf S = Sharpe ration in the real estate market from Cheng, Lin and Liu (2013-FR): u-rf SRE = (t+troM) (8) 0 +208 (1-3)+ (x + (3T) 0) o TOM+0 (1-1) (t+tTOM) 3. [5 points] Cheng, Lin and Liu (2017-JRER) develop the mixed-asset portfolio by extending the Modern Portfolio Theory (MPT) as follows, minWRE, WL, T Briefly discuss the difference between these two models and explain why the real estate should have its own asset allocation model. {WRE [(URE + B ORE) FROM + (8T + (1 B) + 28 (1 1 B) T) ORE ] + wT0, +2pWREWZ [(1-8) +BT\TORBOL, :}. .s.t. WRETURE + WLTUL + (1-WRE - WL)