Question: Why does including REITs in a portfolio containing S&P 500 securities produce diversification benefits? Real estate investment returns do not change much from year to

Why does including REITs in a portfolio containing S&P 500 securities

Why does including REITs in a portfolio containing S&P 500 securities produce diversification benefits? Real estate investment returns do not change much from year to year. Real estate investment returns are highly correlated with returns for stocks. Real estate investment returns are not highly correlated with returns for stocks. Real estate investment returns are not subject to federal income taxes

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