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Why do investors invest in real estate? Answer this from a portfolio theory perspective, considering the...

Why do investors invest in real estate? Answer this from a portfolio theory perspective, considering the trade-off between portfolio risk and return. (Hint: What is the primary role of typical income property real estate within the portfolio? Is it bought to achieve a high average return?)

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Investors invest in real estate thinking in mind that the more risk they take better are the chances of return, so as per the theory they work wherein they calculate the risk and basis that they take a calculated chance as to what could be the possible gain and possible loss and accordingly actions are taken. So the trade-off between the risk that a person has to take and the return that he could get is such that most of the investors go for investing in real estate.

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