Figure 2
The image contains two graphs comparing portfolio weight to portfolio risk. The first graph, labeled Panel A, shows the total allocation to all real estate sectors constrained to less than or equal to 10 percent. The x-axis represents portfolio risk, ranging from 0.1 percent to 17.4 percent, while the y-axis represents portfolio weight, ranging from 0 percent to 100 percent. Different patterns represent various asset classes: stocks, bonds, hotel, office, retail, and industrial. The second graph, labeled Panel B, shows an unconstrained portfolio. The x-axis represents portfolio risk, ranging from 0.1 percent to 6.5 percent, while the y-axis represents portfolio weight, ranging from 0 percent to 100 percent. Different patterns represent the same asset classes as in Panel A. In both graphs, the portfolio weight shifts among different asset classes as portfolio risk increases.Hotel asset allocation diagram: Asia Pacific. Source: Authors' analysis/compilation