The Donaldson have received advice from two sources as to how to invest the $12,500 of sales proceeds from the present portfolio during the next 3-7 years in order to meet the costs of Matthew's college education. One person suggested buying a small piece of unimproved real estate. The other has suggested investing in a real estate investment trust (REIT).

Match the type of real estate investment (A or B) with each of the investment characteristics below:

A. Purchase of a piece of unimproved real estate

B. Investment in REIT

• Lower degree of liquidity (A or B?)
• Higher transfer costs (A or B?)
• Higher degree of diversification (A or B?)
• Lower opportunity for dollar cost averaging (A or B?)
• Lower degree of potential legal liability (A or B?)