Risk & Portfolio Management

This course examines the methods employed in both strategic and tactical value enhancement decision-making for real estate. Students learn how to balance the potential for positive financial reward with concurrent exposure to risk and uncertainty in both single assets and portfolios. Risk analysis begins with a review of the credit worthiness of tenants and buyers and moves up the scale to risk analysis of portfolios of assets and modern portfolio theory. The advantages and disadvantages of small versus large-scale enterprises; single versus multiple property type portfolios; and local, regional and national market diversification strategies are evaluated. The interaction of volatility, risk and diversification is examined.