Results reported in the chapter showed that by including either REITs or the NCREIF Index in a

Question:

Results reported in the chapter showed that by including either REITs or the NCREIF Index in a portfolio containing S&P 500 securities, corporate bonds, and T bills, diversification benefits resulted. Why was this true? Did those benefits come about for the same reason for each category of real estate investment?

Portfolio
A portfolio is a grouping of financial assets such as stocks, bonds, commodities, currencies and cash equivalents, as well as their fund counterparts, including mutual, exchange-traded and closed funds. A portfolio can also consist of non-publicly...

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