Alt. Investments - Real estate important, relative, because, tend, stock

cross-ied

The use of appraised values tends to smooth the returns of appraisal~based indexes relative to market prices. In portfolio optimization models, appraisal~based indexes will tend to have very large weights because of their low volatility and low correlation with important asset-class proxies such as the S&P 500 stock index.

can anyone explain what this means?

agulani

Very clear answer. You should write the books for the CFA.

thanks again rusbus

invic

can anyone help with this?