Compare the relative liquidity characteristics of direct versus indirect investment in real estate. Discuss three factors that affect the liquidity of both forms of investment.

Q.1. Compare the relative liquidity characteristics of direct versus indirect investment in real estate. Discuss three factors that affect the liquidity of both forms of investment.
Q.2. Ian Parkinson, as chief pension officer of a large defined-benefit plan, is considering presenting a recommendation that the pension plan make its first investments in three different types of hedge funds: 1) market neutral, 2) convertible arbitrage, and 3) global macro.
EXHIBIT 8-4 Performance of Hedge Fund Strategies and Traditional Assets 1990-2004 Fund or Asset Annual Return Annual Standard Deviation Sharpe Ratio Minimum Monthly Return Correlation with S&P 500 Correlation with Lehman Gov./Corp. Bond HFCI 13.46% 5.71% 1.61 6.92% 0.59 0.17 Event driven 13.46% 5.59% 1.64 -9.37% 0.59 0.07 Equity hedge 15.90% 9.34% 1.24 -9.70% 0.64 0.10 Equity market neutral 9.24% 2.50% 1.98 -1.07% 0.09 0.24 Merger/risk arbitrage 9.07% 4.86% 0.99 -8.78% 0.48 0.10 Distressed 15.28% 6.07% 1.81 -9.71% 0.42 0.04 Fixed-income arbitrage 7.62% 3.61% 0.92 -6.61% 0.06 -0.06 Convertible arbitrage 10.23% 3.96% 1.50 -3.42% 0.19 0.13 Global macro 16.98% 8.38% 1.51 -5.41% 0.26 0.34 Short selling -0.61% 19.39% -0.25 -14.62% -0.76 -0.01 S&P 500 10.94% 14.65% 0.45 -14.46% 1.00 0.13 Lehman 7.77% 4.46% 0.78 -4.19% 0.13 1.00 Gov./Corp. Bond MSCI World 7.08% 14.62% 0.19 -13.32% 0.86 0.09 Lehman 8.09% 5.23% 0.73 -3.66% 0.11 0.74 Global Bond

Last Completed Projects