Why might it be argued that corporations do not have a comparative advantage when investing in real estate as a means of diversification from the core business?

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Corporations may not have a comparative advantage when investing in real estate as a means of diversification from the core business because they may not hold a wide range of different types of properties in different geographic areas, which can limit their ability to diversify effectively. Individual investors may be better equipped to react quickly to changes in market conditions and to choose a more diverse range of properties to invest in. Additionally, corporations may use property managers who do not understand financial markets, which can further limit their ability to diversify effectively through real estate investments. While diversification can potentially reduce risk, it may also dilute a corporation's risk-return profile, which may not provide an advantage in terms of achieving their financial goals.

Why Might It Be Argued That Corporations Do Not Have