Problem Set #2 Name_________________________
Risk and Portfolio Management
1. Explain the concept of economic geography. For commercial real estate does
economic geography ignore property type?
2. In commercial real estate the correlations by market type/cluster are very high.
What data can we use to work around this potential pitfall?
3. Explain the relationship between public and private markets in commercial real
estate. What makes this rather unique? How could we use this to our advantage?
4. Explain the difference in cash flows between swaps and forward contracts.