Estate is good investment in well-diversified portfolio

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1) A mortgage pool in its 29th month has a balance of $125,647,349 and a schedule payment of $113,425. Then, if the actual pre-payment had been $398,224, what is SMM? What is CPR?

2) It is commonly known that real estate is negatively correlated with stocks. Does that automatically mean that real estate is a good investment in a well-diversified portfolio? Explain.

Reference no: EM131327115

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