Lecture
This lecture covers the importance of risk assessment in discount rates, the proper treatment of risk in income estimation, and the concept of diversification in portfolios. It also discusses the impact of risk on investment decisions, the role of equivalent certainty in portfolio valuation, and the implications of borrowing money to participate in risky investments. Furthermore, it explores the diversification of real estate portfolios and analyzes the expected returns and risks associated with different investment options. The lecture concludes with a detailed explanation of risk premiums in investment returns and how they influence decision-making processes.