In 200-250 words, explain the diversification benefits of real estate in a portfolio. Given the numerous options examined for real estate investment which do you feel is the optimal route for your portfolio? Provide the rationale for the choices you make.
In 200-250 words, differentiate between mortgage-related securities backed by residential mortgages and those backed by commercial mortgages? Which do you feel would be most well received in the market? Do either of these securities allocate risk more effectively?