Why might it be argued that corporations do not have a comparative advantage when investing in real estate as a means of diversification from the core business?

Multiple Choice

• Corporations often use property managers who do not understand financial markets.

• Corporations do not typically hold real estate in a large number of geographic areas and may not hold a variety of different types of properties.

• Diversification dilutes a corporations risk-return profile and does not provide an advantage to corporations.

• Corporations cannot react as quickly as individual investors to changes in market conditions.