REAL ESTATE AND PORTFOLIO MANAGEMENT: EXAMINING DIVERSIFICATION PROPERTIES
This paper examines the risk-return and diversification properties of real estate investments. In the process, we perform a variance analyses over NPI, TBI and NAREIT United States real estate indexes as well as some of the most common international investment benchmarks. The study uses data from Ja...
| Autores: | , , |
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| Formato: | artículo |
| Estado: | Versión publicada |
| Fecha de publicación: | 2013 |
| País: | Brasil |
| Recursos: | Universidade Federal do Rio Grande do Sul (UFRGS) |
| Repositorio: | REAd (Porto Alegre. Online) |
| Idioma: | portugués |
| OAI Identifier: | oai:seer.ufrgs.br:article/39991 |
| Acesso em linha: | https://seer.ufrgs.br/index.php/read/article/view/39991 |
| Access Level: | acceso abierto |
| Palavra-chave: | Portfolio Investment Real Estate Mean Variance Analyses Real Estate Investment Trust (REIT) Inversión de Portafolio Mercado Inmobiliario Análisis de Promedio Variancia Fundo de Inversión Inmobiliaria (REIT) Investimento de Portfólio Mercado Imobiliário Análise de Média Variância Fundo de Investimento Imobiliário (REIT) |
| Resumo: | This paper examines the risk-return and diversification properties of real estate investments. In the process, we perform a variance analyses over NPI, TBI and NAREIT United States real estate indexes as well as some of the most common international investment benchmarks. The study uses data from January 1990 to March 2006. We present an optimal portfolio that could be used by financial managers and ordinary investors. Results disclose U.S. real estate with greater return than other important investment benchmarks for the fifteen-year study period. Additionally, real estate diversification benefits as constitute of a mix-portfolio are confirmed for the three used indexes. Evidence shows that direct investment in real estate is less sensitive to business cycles than is indirect investment through NAREIT and other similar Indexes. Finally, an optimal allocation of 49.6% for real estate index investing in NAREIT is identified. |
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