Suppose the estimated correlation man ix of the Wilshire 5000 U.S. stock index and two real estate

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Suppose the estimated correlation man ix of the Wilshire 5000 U.S. stock index and two real estate indexes, the Federal Russell Company index (FRC) and the National Association of Real Estate Investment Trusts (NAREIT) is as follows:

Based on this matrix, compare the expected price behavior of the two real estate indexes.

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Global Investments

ISBN: 978-0321527707

6th edition

Authors: Bruno Solnik, Dennis McLeavey

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Question Posted: Mar 25, 2016 06:51 AM

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Suppose the estimated correlation man ix of the Wilshire 5000 U.S. stock index and two real estate

Question:

Wilshire 5000 NAREIT FRC Wilshire 5000 1.00 0.79 0.18 NAREIT 0.79 1.00 0.02 FRC 0.18 0.02 1.00

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Clearly the two real estate indexes have very different price behavior...View the full answer

Global Investments

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